Zachary Holston III is accused of killing his half-sister, Rita Evans, inset, in a business dispute. (Holston’s photo is a screenshot from Fox2; Evans’ photo is from her Facebook page)

A 50-year-old man settled a family business dispute by killing his half-sister as she reached into her purse for her gun after an argument over paperwork in the parking lot of their soap-making company in Michigan, prosecutors said.

Zachary Holston III appeared at his arraignment on Wednesday when the court entered a not guilty plea on his behalf to second-degree murder and felony firearm charges in the death of Rita Evans. He was ordered to remain jailed with bail set at $500,000 bond, Fox2Detroit reported.

Holston appeared in the hearing via Zoom with his wife and attorneys, the station reported.

“The defendant in this situation took steps to avoid confrontation,” said Gerald Evelyn, Holston’s attorney, who wanted him to be released on bond, saying he wasn’t a flight risk, the station reported.

But Macomb County Assistant Prosecutor Steve Fox said the incident, caught on surveillance video, informed the charges, the station said.

“We took his claims of self-defense into consideration at the time of authorizing these charges,” Fox said. “The defendant turned it from verbal to something far worse. And that included pushing away a young woman who was trying to get in between Rita (Evans) and the defendant, drawing his firearm when Rita had no gun at all in her hand, it was in her purse, pointing the gun at Rita as she was getting her own gun in self-defense.”

In a statement, Macomb County Prosecutor Peter J. Lucido said it is not the way for a family to settle a business dispute.

“Gun violence will never be tolerated in Macomb County,” he said. “All disputes must be settled civilly between parties in or out of the courtroom, not on the streets. The loss of a life is always a profound tragedy, and it is especially disheartening when it occurs within the bonds of family. We extend our deepest condolences to the families affected by this devastating event, as they navigate through an unimaginable grief and loss that no words can adequately express.”

Holston was the CEO of Sterling Heights-based Kath Khemicals. Evans was CFO, according to a statement from the company, Detroit’s WDIV reported.

“We are fully cooperating with law enforcement in the investigation of this regrettable incident,” the company told the station in a statement. “At this time, we are not permitted to comment further.”

It all went down on Friday when Holston was leaving the family business in Sterling Heights, Michigan, north of Detroit. He was walking toward his vehicle when Evans approached him in the parking lot, authorities said.

As Holston got into his vehicle, Evans, her husband and daughter approached the passenger door.

The shooting happened after they got into a fight over paperwork that was in the vehicle. Evans died at a hospital.