Legal Question in Business Law in Arizona

As a Franchise Attorney I can only say the following. What does your shareholder agreement provide? Without examining this document, it's not possible to advise you. Some shareholders are allowed to inspect accounting records, but this varies considerably. You can pretty much assume there are no "remaining funds." Whether the funds were distributed properly is an entirely different matter. Bring your shareholder agreement and consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

Yes and Yes (if any). I agree the likelihood of money after payment of debt may be slim but better to know than to always wonder. We can write a letter demanding access to the records then determine whether you should have received a distribution.

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As a shareholder, you have rights under corporate law and rights as provided in the By-laws of the corporation. These are primary and determine your rights to review the books and records of the company, tax returns and current financial statements. Is the shareholder agreement the only agreement you made with the company when you invested? Depending upon the circumstances surrounding your investment and what was represented to you by the officers of the corporation, you may have rights to funds or assets of the company. Remember, money may not be the only asset of the corporation. You should seek counsel with an attorney at once.