Legal Question in Bankruptcy in Alabama

Fiduciary Responsibility

I owned 60% of a corporation which went bankrupt chapter 7. My 40% partner says it is all my fault. He says he thought we were profitable all along and I withheld info from him. He says I violated my ''Fiduciary Responsibility'' to him. Does a shareholder/employee have a ''Fiduciary Responsibility'' to another shareholder/employee?


Asked on 12/18/03, 10:20 pm

1 Answer from Attorneys
Sterling DeRamus Sterling L. DeRamus, Attorney at Law

Re: Fiduciary Responsibility

Like a lot of things in law, it depends. What was your agreement? What did you hide from him? Did you really hide it, or did he just never ask? And most importantly, are you wealthy enough to bother suing? Not to be crass, but the truth is that there are a lot of "wrongs" that don't go punished. Why? Because an attorney wouldn't take the case without either a large retainer, insurance or an extremely wealthy defendant from whom they could be assured collection. If you meet the criteria, someone may very well sue you, and you would need to fight it. But it sounds like a tough case, and nothing may happen - even if you didn't follow the legal requirements to a Tee.

In any event, good luck and if you have any questions, please do not hesitate to email me at [email protected]

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Answered on 12/19/03, 11:59 am


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