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Terminating a shareholder who is an employee. Can you take their shares? Kentucky

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  • Terminating a shareholder who is an employee. Can you take their shares? Kentucky

    If a shareholder in an llc is charged with a criminal infraction (class d felony). When you terminate them, can the company take their shares for misconduct or something?

  • #2
    Did this felony involve the LLC in some way?
    I am not an attorney, and don't play one on TV. Any information given is a description only and should be verified by your attorney.

    Comment


    • #3
      Response

      Originally posted by Alice Dodd View Post
      Did this felony involve the LLC in some way?
      It did not. It was a drug offense that occurred in their home

      Comment


      • #4
        Das ist in der Doktor!

        Originally Posted by elitt222
        If a shareholder in an llc is charged with a criminal infraction (class d felony). When you terminate them, can the company take their shares for misconduct or something?



        And what exactly would be the purpose of the taking of this stock back,
        what is to be accomplished by doing so?
        How did the soon to be terminated employee acquire this stock?
        Were they given to him in Laue of pay or as a gift or bonus?
        Did he earn or were they bought by the employee?
        Is this employee a vested employee?
        Without knowing the terms and conditions in which this stock was acquired by the employee, it would be difficult to offer an educated answer.
        Perhaps this is a question that should be asked of an Attorney.

        .._____________
        ~ Free advice is like your public defender,
        …you get what you pay for. ~ drr

        Comment


        • #5
          Originally posted by drruthless View Post





          And what exactly would be the purpose of the taking of this stock back,
          what is to be accomplished by doing so?
          How did the soon to be terminated employee acquire this stock?
          Were they given to him in Laue of pay or as a gift or bonus?
          Did he earn or were they bought by the employee?
          Is this employee a vested employee?
          Without knowing the terms and conditions in which this stock was acquired by the employee, it would be difficult to offer an educated answer.
          Perhaps this is a question that should be asked of an Attorney.

          .._____________
          ~ Free advice is like your public defender,
          …you get what you pay for. ~ drr


          Its hypothetical.

          Eg a founder gets arrested. Rather than having dead money can the his stock be acquired by the company

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          • #6
            We don't reply to hypothetical situations.

            Comment


            • #7
              Originally posted by HRinMA View Post
              We don't reply to hypothetical situations.
              Thank you,
              your response was much more polite than mine would have been...

              ..____________
              ~ If electricity describes the movement of electrons,
              does morality describe the movement of morons ?

              Comment


              • #8
                I would think that you couldn't steal their shares. You'd have to have your LLC docs reviewed by an attorney, but I can't imagine why someone should have to forfeit shares in an LLC because of something outside the business. What is your reasoning behind this idea? I'm really curious.
                I am not an attorney, and don't play one on TV. Any information given is a description only and should be verified by your attorney.

                Comment


                • #9
                  Originally posted by elitt222 View Post
                  If a shareholder in an llc is charged with a criminal infraction (class d felony). When you terminate them, can the company take their shares for misconduct or something?
                  1. Do you have the legal right to terminate them?
                  2. No. You cannot take away what they either legally purchased or legally earned (whatever the fashion is they acquired the shares).
                  I don't believe what I write, and neither should you. Information furnished to you is for debate purposes only, be sure to verify with your own research.
                  Keep in mind that the information provided may not be worth any more than either a politician's promise or what you paid for it (nothing).
                  I also may not have been either sane or sober when I wrote it down.
                  Don't worry, be happy.

                  http://www.rcfp.org/taping/index.html is a good resource!

                  Comment


                  • #10
                    Das ist in der Doktor!

                    Originally posted by cactus jack View Post
                    1. Do you have the legal right to terminate them?
                    2. No. You cannot take away what they either legally purchased or legally earned (whatever the fashion is they acquired the shares).
                    CJ the OP was asking a hypothetical question.
                    I think the word hypothetical is Latin for not real or bogus,
                    or I have to much time on my hands
                    and this is a made up situation,....

                    ..____________
                    ~ If electricity describes the movement of electrons,
                    does morality describe the movement of morons ?

                    Comment


                    • #11
                      You need to refer to the shareholder agreement. The only such agreement I'm familiar with was for a lawfirm which spelled out that shareholders (senior attorneys) who were no longer employed by the firm could not retain their shares and they would be purchased back by the firm upon separation.

                      If you don't have a shareholder agreement (although by law, I believe you must have one) or this is not clear in the agreement, then you need to consult with a qualified attorney asap.

                      Comment


                      • #12
                        Originally posted by drruthless View Post
                        CJ the OP was asking a [I]hypothetical question.
                        drruthless is correct - everyone please remember this is a hypothetical question. We generally don't even reply to them.
                        Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                        Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                        Comment


                        • #13
                          Originally posted by elitt222 View Post
                          If a shareholder in an llc is charged with a criminal infraction (class d felony). When you terminate them, can the company take their shares for misconduct or something?
                          No. The company cannot take any of the shares away. They are legally purchased and/or earned by the shareholder. To do so is theft.
                          On the other hand, the company can extract from your professor three-fold in penalties and damages and refuse him/her service at the nearest Burger King for allowing a student to cheat on their homework....

                          And you can tell them that I and specifically I said so.
                          I don't believe what I write, and neither should you. Information furnished to you is for debate purposes only, be sure to verify with your own research.
                          Keep in mind that the information provided may not be worth any more than either a politician's promise or what you paid for it (nothing).
                          I also may not have been either sane or sober when I wrote it down.
                          Don't worry, be happy.

                          http://www.rcfp.org/taping/index.html is a good resource!

                          Comment


                          • #14
                            Closing thread on this hypothetical question - believe it has enough replies.
                            Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

                            Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

                            Comment

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