Legal Question in Business Law in New York

I own 100% of the stock in a sub s corp in ny state. As part of the purchase agreement I had to sign a proxy giving up my voting rights until the debt for the corparation is paid off to the former owner. Now 3 years down the road the former owner is asking for check book registers and deposit slips and all sorts of paperwork, What rights does this person have not being a stockholder but having voting rights. I am the only person on the board of directores and am now being treated like an employee with a list of demands for different paperwork. I have supplied this person with financial statements every year. What are my rights and theirs?


Asked on 2/16/10, 2:36 am

1 Answer from Attorneys
Julie Mason Mason & Marchese, P.C.

The first question I have is what does the purchase agreement state? What does the proxy state? What mechanism is there to notify the former owner that the debt has been paid? Who owns the debt - the former owner or an outside party? These documents will determine what rights the former owner has. If they are silent on these issues, I will need more information to help you out.

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Answered on 3/01/10, 8:40 am


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