Legal Question in Business Law in Georgia

corporate wrong doing

I'm 50% stockholder in a small corporation. The other stockholder has his name on our company bank account, I do not for legal reasons. He's paying his wife weekly, who is not an employee or contractor, he's making transfers from the company account to his personal account. He makes decisions that directly affect this company without any votes or shareholders meetings. I work myself as an employee, which I think I'm allowed to do and he gives me a hard time about paying me. He's president and I'm vice president. He has our payroll service in his home which I don't have access to. He transfers the phone line from our office to his personal home phone, which I don't approve of. I think there's company information being kept from me. I suspect criminal wrongdoing but without access to the company account, hiring an attorney is a difficult task. He's frauded a customer by selling her a product that she didn't sign for because it saved him money. What can I do? This is all a learning experience to me, please help! How do I file my own petition with the courts for a hearing involving this matter? I've studied the model business corporation act and I think I have a legal leg to stand on, so to speak. Any advice?


Asked on 2/18/08, 6:13 am

2 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: corporate wrong doing

Again, the only advice is to get a business litigation lawyer. Guiding you through a lawsuit is not the purposes of this board. You need a lawyer to take the appropriate steps, review the books and records, and file any necessary claims. It is not a matter of "getting a hearing." It is not a DIY process.

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Answered on 2/18/08, 6:28 am
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: corporate wrong doing

It sounds as if you may have multiple claims against the other shareholder. You may want to demand payment for one half of all improper transfers and some amount to buy you out of the business. If he refuses or you don't want to go that route, you will have to file a law suit. Have a local business attorney review the whole situation and provide you a comprehensive opinion regarding your options.

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.

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Answered on 2/18/08, 7:42 am


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