From school you know that the only rights you are entitled to are: life liberty and the pursuit of happiness.
For everything else there is the law and what rights you contract for.
Thus, a common question for those who run their own business is, “What are my rights?”
This is especially true if they are not the majority shareholder, managing partner/general partner, or managing member.
Every member of a business is happy when they and the business makes money.
However, issues arise when, the person/people in charge make decisions they don’t agree with or the business makes less money, etc…
So, what are their rights?
The best answer is: what did they agree to?
When I look into my clients’ rights, the first thing I do is look at the shareholder’s agreement, the partnership agreement, the operating agreement, or any document that speaks to what the parties agreed to when starting the business.
If the parties did not draft up some type of agreement, then I have to look at the New York LLC/Partnership/Business Corporation laws to see what general rights every business person is afforded.
The laws always control…unless the business agreement specifies otherwise.
This is why (1) you need to be represented by an attorney when you start or join a business, (2) make sure you understand your rights before you start or join the business, (3) understand what you need to do if you no longer get a long with your business partners, and lastly (4) read the agreement before you sign it.
Now if the unfortunate happens and you no longer get along with your business partners some of your options are as follows: (1) sell your shares, (2) have your partners buy out your portion, and (3) dissolve the business.
Just remember to read your agreements to understand which options are available to you.
Thank you for reading, my business is to protect your business!
Watch the video above to learn more.