Legal Question in Business Law in Georgia
corp. law
my husband owns a freight brokerage.we sold a load for a client to go across country.unauthorized driver opened load in ca.& it dropped on them.we are not at fault but in a lawsuit everyone gets dragged in.My question is if my husband closes our brokerage(inc.)and i reopen another in my name can my husband still be held responsible for a corporation no longer in bussiness.
2 Answers from Attorneys
Re: corp. law
Possibly, but it depends on how exactly you do it. First, if your husband dissolves the company without resolving the outstanding claim (or any other debt or potential obligation), he risks being personally liable for the company debt. Second, you can certainly start as many new companies as you like, but if you transfer the assets of the current company to a new company without adequate consideration (i.e. payment), the new company could be treated as a successor in interest company and be included in the lawsuit. The reason being that it is fraudulent to get rid of assets to avoid paying creditors.
If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.
The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.
Re: corp. law
Unless you are a lawyer, and you are experienced in this type of litigation, you should shut up. I mean that in the nicest and best possible way. If you are a co-defendant, your lawyer will talk to you. Please, go through a lawyer when it's ugly like this.
Related Questions & Answers
-
How can I become an LLC? Hello, I will be opening an office cleaning business and I... Asked 6/24/09, 11:52 am in United States Georgia Business Law