The withdrawal of an owner of a closely-held business should be carefully addressed by the remaining owners of the business to ensure that all outstanding issues between the parties are resolved. In addition to properly structuring and effectuating the purchase and sale of the withdrawing owner’s interest in the business, it is important to require that the withdrawing owner resign from all positions he or she holds in the business and that a clear understanding is reached about the remaining payments owed to the withdrawing owner by the business. Finally, consideration should be given to securing the withdrawing owner’s release of any and all potential claims against the business and its remaining owners, especially if the withdrawing owner employed by the business.
The attorneys in our Business & Finance Department frequently assist clients in addressing these withdrawal issues. If you are interested in learning more about these services, please contact Paul T. Rushton, the Chair of our Business & Finance Department, via e-mail (prushton@rjglaw.com) or call 570-826-5600.