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If they're not working there is no reason they should get a salary. They should get distributions at the end of the year which are based on profit nothing else. If the company doesn't turn a profit, they don't get a distribution. When you pay out distributions they should be exactly proportional to the stock percentage owned. This means that if you pay distributions you must give yourself 60% of them, and then 40% to the other owners. You may want to consult an attorney right now, because these things can escalate into lawsuits very quickly. There's a number of ways to handle a situation like this. If you have the only voting board seat, you can fire them, and kick them off the board. You own 60%. There's nothing they can do unless they happen to have 2 voting seats on the board, where they could remove you and take over the company. If there's 2 seats total, you're in a deadlock, even though you own more stock.

by Jestep

1 month ago

Asker's Rating: 

One way to distribute money out of a corporation is thru dividends. You would hold a stockholders meeting and declare the dividend (xx cents per share). It would take a majority of the shares voted to set the dividend !! The other way is to have the partners working in the corporation, drawing a salary/hourly wage. They can "demand" money, but it should come out thru the dividends or salary/wages. A letter on lawyers letterhead, explaining this, might be in order.

by Bruce- 1 month ago