Legal Question in Business Law in New York
Lawsuit award given to a company
I was a 49% share holder of a private company aaa . I was also the CFO. There was only one other owner, & he owned 51% of the company. Company aaa was incorporated in New York in 1992. I resigned from the company in 1994, although I never gave up my 49% shares, & I have the documentation to prove it, which was from Albany, NY.
In 1993, when I was still part of hte company, we performed consulting work for another company bbb. Company bbb in 1994 decided not to pay our consulting fees.
In 2002, the other owner (51% owner of aaa) of the company sued company bbb & won 5 million dollars in the United States court of appeals for the second circuit. The lawsuit was company aaa vs company bbb.
Am I entitled to 49% of the 5 million dollars awarded?
What if the 51% owner of company aaa, which was a New York based company, changed the company to another name & made it a california company, & registered 100% of its shares to himself, without my consent.
Legally, I still own 49% of that new company, correct?
Thank You
2 Answers from Attorneys
Re: Lawsuit award given to a company
You need to sit down with a business attorney to even begin to get this situation sorted out. A lot would depend on your company bylaws/operating agreement, any other agreements you may have had with your partner and the way you withdrew from the company. You may have a number of rights, but it is difficult to say without seeing the items listed above. Please feel free to contact my office if you would like to discuss this case further.
Re: Lawsuit award given to a company
As stated above, it is imperative that you sit down and consult with an attorney asap. In fact, I encourage you to consult with a few different attorneys. There are many issues involved here, starting with your company's charter agreement, bylaws, etc. Obviously, there is a lot at stake. Our office is available for a free consultation.
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