Legal Question in Business Law in New York

illegal conduct and corporations

hello,

my question is: i am in the midst of selling my stock in a partnership. the corporation is conducting illegal activity.in the stock redemption agreement they are making me sign to the fact that i will not go to any government agency describing the misconduct. i am bound to this agreement even if there is illegal conduct. thanks.

nick


Asked on 7/23/03, 1:41 pm

1 Answer from Attorneys
Stephen Loeb Law Office of Stephen R. Loeb

Re: illegal conduct and corporations

I couldn't imagine that such a provision would be enforceable. If presented to a Court I have a hard time believing a judge wouldn't strike down the clause as void as against public policy. On the other hand you have some potential legal difficulties yourself if you were aware or participated in the illegal activities and benefitted from them. I would strongly urge you to speak to an attorney before doing anything with respect this contract or any other transactions with this company.

Should you like to discuss this or any other legal matter, you can call my office to schedule an appointment for a consultation or in the alternative, I can be reached for on-phone low-cost legal consultation at 1-800-275-5336 x0233699.

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Answered on 7/23/03, 1:51 pm


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