Legal Question in Business Law in Florida

Business quesiton

I am a shareholder in a corporation s. My friend is a CEO of that same corporation and involved in day to day operations of the business, which involves hiring, firing and training people and also signing checks. I am there may be 3-4 times a week doing some technical stuff: managing their website, phone system, setting up new computers and things of that nature. Lately I have a noticed that he is lying to clients, his sales people sometimes promise more on the phone that they company can offer and things of that nature.

My questions is: If, god forbid, his company is indicted for something including fraudulent selling practices and some other charges that come with that would I be in trouble as well? Or being a shareholder protects me from being responsible for that?


Asked on 8/13/08, 9:42 pm

2 Answers from Attorneys
Johm Smith tom's

Re: Business quesiton

It all depends on how involved you are, but you have potential liability. You should get legal advice on how to deal with this; it is complicated but doesn't have to blow up if you handle it well.

Read more
Answered on 8/27/08, 11:56 am
Alan Wagner Wagner, McLaughlin & Whittemore P.A.

Re: Business quesiton

As only a shareholder and assuming you are not participating, you should be fine. It does not sound like any criminal issues are involved, but certainly there is civil exposure. You should probably bring your concerns to his attention, preferrably in writing.

Read more
Answered on 8/13/08, 10:08 pm


Related Questions & Answers

More Business Law questions and answers in Florida