Legal Question in Business Law in New York

Business

Scenario: Two parties own a small

start-up business, which is

incorporated. Both are equal share

holders as well as the only employees

of the company. Both have equal

ownership of all company assets and

both are on the office lease.

Four months prior to the end of the

lease share holder #1 abandons the

business leaving no forwarding

address or phone, forcing the

remaining share holder #2 to

assume the responsibility for the

rent, utilities and other ancillary

expenditures. As the business has

no reserve funds in the bank the

share holder #2 pays all bills out of

his own pocket. He moves out of the

office, turns the key over to the

landlord and puts all the assets in an

off-site storage facility. Three months

go by and share holder #2 continues

to pay the rent until the office is

rented one month prior to the lend of

the lease by a new tenant.

Question: Under those

circumstances, can share holder #2

legally assume ownership of the

assets still housed in the off-site

storage facility?

1 Answer from Attorneys

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