Legal Question in Business Law in California

Anybody can sue. If in small claims court, you are limited to a maximum of $10k now, I believe. The judge will determine who's interpretation of the documents and facts and arguments is the winner.

The language of the documents determines what your wife's rights are, and your interpretation and opinion is not necessarily right. To get a lawyer's opinion, you will have to consult with a lawyer to review all the documents, and all the facts and background.

Your wife may have a claim for more than $10k if her share is worth more. In that case, she would consider filing a Superior Court lawsuit. She'll need an attorney to do so, unless she knows how to represent herself effectively against an attorney hired by the company to defend against your claim.

If serious about hiring counsel to consult and possibly help in this, feel free to contact me. I�ll be happy to help fight and get the best outcome possible. I�ve been doing these litigation cases for many years.

As a sidelight, your shareholder figures don't add up - if one shareholder built the infrastructure and the other four each invested $10,000, that adds up to five shareholders.

Now to answer your question. If there is a written agreement that says a shareholder may sell back his/her shares after one year for the amount originally paid, and the agreement was duly executed by the shareholder and the company, I'd say it is enforceable to the extent that your wife can win a lawsuit and get a judgment. Whether she can successfully collect the judgment is another matter.

Another issue here is whom to sue. You refer to a woman who was, apparently, the promoter and perhaps the only officer of the corporation. Maybe she is liable on the promise to buy back the stock -- or maybe it is the corporation. Which do you sue, the corporation that issued the stock, or the woman who promoted the deal? Maybe you name both as defendants. In any event, read the agreement carefully to figure out who is the promisor.