Legal Question in Bankruptcy in Illinois

Re: S corp partnership rights with bankruptcy

Quite possibly. There are statutes in Illinois designed to protect minority shareholders, under the Business Corporation Act. I have litigated these issues a number of times.

Typically in these cases, in order to perform an assessment from a legal perspective, one must know in detail the facts of the case -- as these types of cases are extremely fact-intensive. Suffice it to say that the majority shareholder owes certain fiduciary duties to the minority shareholders and to the company itself as well as numerous statutory duties. If the minority shareholder has committed corporate waste or otherwise taken action in the majority's self-interest to the opppression of the minority, there may be recompense.

-- Kenneth J. Ashman; www.AshmanLawOffices.com

This communication is intended for general informational purposes and is not intended to create an attorney-client relationship, which, under the policies of Ashman Law Offices, LLC, can only be created by execution of a formal retention agreement.

Re: S corp partnership rights with bankruptcy

I agree with the previous attorney's comments. However, with additional information you might have some recourse through the bankruptcy courts. Whether you have options here depends on when the partner filed for bankruptcy and whether the partner filed individually or filed with the partnership. If you are within the statute of limitations to act through the bankruptcy court you might be able to find recourse through the bankruptcy court.

Very truly yours,

Thaddeus Hunt, Esq.

(847) 223-4410

Disclosure: The information provided herein is for informational purposes only and should not be construed as legal advice. Further, nothing herein should be construed as creating an attorney-client relationship.