Shareholder buyout/Removal

[connie.yoshida]

I am a business owner in California with a problem: my co-owner/ex-husband. The original restaurants were started in Japan by my father, whom generously allowed us to franchise it to the US even though my husband was not qualified to start one. I am the president of the company while he is the VP. We each have half of the shares of the business. I do the accounting for the business; he orders things and delivers them to the restaurant.

Now fast forward 20+ years, he leaves me and our four children for an employee. He petitions for a divorce, all we have to do left is separate the properties (aka sell them). Yet he constantly demands money even though our paychecks are the same, except I have four other mouths to feed. When I refuse, he then takes the cash from the business which now happens daily. I have tried many measures to stop him, to no avail.

Two years later, the dilemma continues, except worse. I am trying to buy his share but he plays dirty. He told my daughter that he has potential buyers but I would be the first person he wants to sell it to, yet he refuses to meet with me or our corporate attorney (who had no idea my ex-husband had any intent of selling his shares). Recently, I found out that he is opening another restaurant with the same name without my approval even though I am the president of the company and an equal share holder. Our corporate attorney knows nothing of this.

Is there any way that I can get rid of him or punish him legally?

[MyITGuy]

Why does your corporate attorney not know anything about this?

First, I'm sure he will have something to say about the funds being withdrawn from the business without approval. I would think this would be considered Embezzlement if you want to prosecute, or you can sue for breach of fudiciary duty (Assuming you drafted up some good corporate bylaws)

Secondly, I'm sure your attorney would want to take the appropriate steps if he is opening up another restaurant without approval.

[Business Attorney]

This all needs to be discussed with your corporate attorney and/or your divorce attorney. There are far too many complications to get advice on a forum like this.