Legal Question in Business Law in California

Corporation gave Loan to Individual

I gave someone a loan through my

corporation ''WMG'' to an individual. The

corp is now suspended. Can I still sue

the individual for the amount as he

failed to pay or sell the debt to another

company and sue? Please advise


Asked on 1/02/09, 3:49 am

3 Answers from Attorneys
Roy Hoffman Law Offices of Roy A. Hoffman

Re: Corporation gave Loan to Individual

No, only corporations in good standing can bing suit.

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Answered on 1/02/09, 11:36 am
JOHN GUERRINI THE GUERRINI LAW FIRM - COLLECTION LAWYERS

Re: Corporation gave Loan to Individual

It will depend upon to whom the money is due. Do you have a written agreement? If so, is the money due to the corporation or you individually? If you individually, then you can sue in your own name. If to the corporation, then the corp must not be suspended in order to sue in its name. Of course, the corp could assign the right to sue to you, and then you could sue in your own name.

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Answered on 1/02/09, 11:38 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Corporation gave Loan to Individual

I agree with both of the previous answers. It is illegal for a lawyer knowingly to file court papers on behalf of a suspended corporation.

A clever opponent might defend a suit by you personally on the ground that the suspended corporation doesn't have the power to make the assignment. I think this argument is a loser, but watch out for it.

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Answered on 1/02/09, 11:47 am


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