The ability to force out a co-owner depends on the relevant legal landscape that governs the relationship.
The documents that regulate the relationship between the co-owners (e.g. the Shareholders Agreement and Company Constitution) are key aspects of the legal landscape. The terms of these documents can be vastly different from situation to situation. Some of these documents provide a clear forced exit process, others do not. Looking at these documents is usually a sensible first port of call to understand what is and what isn’t possible.
If the documents governing the relationship between the co-owners do not contain a forced exit process, a forced exit can potentially be achieved with the assistance of the Court (e.g. via a winding up or oppression proceedings).
Alternatively, you can seek to negotiate a mutually agreed exit on appropriate terms. Some of the exit methods include:
an agreed sale of shares for a fair price;
a company buy-back of shares; and
a sale of the entire business to a third party.
We recommend obtaining tailored advice so that you can understand your legal position and strategic options.