Legal Question in Business Law in Florida
A corporation that I did work for owes me money. I owe some money to a second corporation. A shareholder in both corporations is trying to offset the amount owed to me from the first corporation with the amount I owe to the other corporation without my agreement (I am disputing the amount owed to the second corporation). The companies are not related, except that the shareholder owns stock in both. Is this legal or does it constitute fraud or other illegal actions?
1 Answer from Attorneys
It is not legal. Each corporation is considered a separate entity under the law as if they were different people regardless of the shareholders. Fraud is a complicated issue, and it is not necessarily fraud. You may have some recourse legally, but the other corporation has the same legal recourse against you in your scenario.
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