Legal Question in Business Law in Minnesota
Corp. Board of Directors
I have been on the Board of a start-up cooperative (corporation). As Director and treasurer, I personally guaranteed credit accounts to vendors (which are all paid and current). I am leaving the Board now. I am notifying those vendors that I no longer have any obligation to the co-op. Is this sufficient to notify in writing, and what language shall I use? Thank you.
2 Answers from Attorneys
Re: Corp. Board of Directors
It's not what YOU say that's important. It's what the CREDITORS acknowledge and accept.
I have 25 years Debtor Creditor law exeperience. Call or email for more info.
Re: Corp. Board of Directors
Unfortunately, it is not so simple to modify a contract.
As a guarantor, you are obligated on the debts by contract. That can only be changed if the contract is terminated or modified. Until that occurs, you will still have personal liability and nothing that you say can change that result.
AYour remedy is to work with your former company to seek a resolution of this issue. In general, the creditor may be willing to modify the contract, but it may require:
(1) a new guarantor who is credit worthy to step in to your shoes; and/or
(2) a satisfaction of any existing balance.
For a consultation call 952.746.2122.
Related Questions & Answers
-
Corporate problem Two of us are 50/50 owners of a small corporation. We are not... Asked 7/11/07, 8:35 am in United States Minnesota Business Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
