Legal Question in Business Law in Georgia

Corporation Buyout

I formed a corporation along with one other person. We have 50/50 in shares. We are both officers of the corp. She has the corp. checkbook, corp credit card statements (mailed directly to her home), and she has taken $350.00 more in draws than me. She has added many purchases to the credit card which now is at $7000.00 and is in her name. She refused to refund money to one of our clients for failure of providing service. I have asked to discontinue our business relationship. She wrote me a threatening letter and I went to the bank to withdraw one half of the remaining cash and my $350 for fear that I would never be able to protect the corporation. Now she has threatened a lawsuit and has stated that I stole money. We also have a corporate website that she claims I have no rights to because she personally owns the domain name. Can you please advise me of where to find the statutes that would help me to make a decision about retaining a lawyer and advise me regarding her threats?

Thank you,

--name removed--


Asked on 11/17/06, 2:16 pm

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

Re: Corporation Buyout

In addition to the previous answer, you likely are liable to the company and/or creditors for the money you took. Corporate funds are not the personal funds of the shareholders or officers. Before doing anything else that may harm your chances for getting relief in court, should it come to that, see a lawyer. For others who may be reading, a 50/50 share in a business, without detailed written agreements for resolving a dispute, breaking ties, or getting out of the business, are not a good idea.

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Answered on 11/18/06, 6:01 pm
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Corporation Buyout

Corporate divorces can be very complex and sometimes more so than a real divorce. Most of your rights, duties, etc. should be in your corporate documents - e.g. bylaws and stock subscription agreement. You can try and look at the Georgia Corporation Code (OCGA �14-2-101 et seq.), but I would not recommend moving forward without speaking with an attorney because it is a very complex area of the law.

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 11/17/06, 4:41 pm


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