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
3 Answers from Attorneys
Re: Corporation gave Loan to Individual
No, only corporations in good standing can bing suit.
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.
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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