Legal Question in Business Law in California
Officer loan of money to Corp.
I was a corporate officer and loaned money to the company without documentation except for bank statements. Am i entitled to any monies I loaned to the corporation?
3 Answers from Attorneys
Re: Officer loan of money to Corp.
Sure, if you can prove the loan. The admissible evidence will determine that. If it is enough money to justify hiring an attorney, instead of going to small claims court, feel free to contact me if the case is in SoCal.
Re: Officer loan of money to Corp.
I believe I just answered this in detail. Sometimes LawGuru gets duplicate copies of questions (I think it is because the site is slow and users press the send button more than once). The basic answer is "yes," unless this were an equity investment or gift and not a loan, but the burden of proof is on you as plaintiff, to prove sufficient facts (it was a loan; the principal sum; the fact that it is now due) and then you have to be concerned with a statute of limitations defense (and maybe a statute of frauds defense) and the collectibility of a judgment.
Re: Officer loan of money to Corp.
Whether you are entitled to the money is one question, and whether you can prove it is another. The lack of documentation has no bearing on the first question but may be a real problem as to the second.
If the money really was a loan then you were initially entitled to be repaid according to the terms of your agreement with the company. It is possible, however, that subsequent events have eliminated that entitlement. For example, the statute of limitations on your claim may have expired. It is also possible that you have somehow waived your right to repayment. If the company went bankrupt then its debt to you may have been discharged in whole or in part. There are other possibilities too numerous to list here.
As I said, though, proving that you made the loan and establishing what the terms of the loan agreement were may be very difficult regardless of whether you are still entitled to collect.
Good luck.
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