PROFESSIONAL ENTITY BREAKUPS

By , March 31, 2017 4:39 pm

The question addressed in the case discussed by Peter Mahler in his most recent “Business Divorce” post is, in Peter’s own words (below in quotes):

“Does a shareholder have a fiduciary duty not to exercise a contractual right under the shareholders agreement to resign and demand a buy-out of his shares by the financially distressed corporation, particularly when the corporation’s default would trigger the other shareholders’ personal guarantees?”

The professional entity in Peter’s post is a corporation. However, the issues for that entity and its shareholders apply as much to professional LLCs and their members.

Here is the link to Peter’s post: http://www.nybusinessdivorce.com/2017/02/articles/professional-corporations/race-exit-professional-practice-falters/

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