Legal Question in Business Law in New York

NY Corporate Law

A, B, and D form a NY non-profit. D processes the paperwork, pays for the incorporation, fees, etc. Also pays for website design and hosting. Invests time and money A, B and D then have a falling out before they conduct the initial meeting of creditors. Several times over the next six months A and B attempt to access the bank account (which D opened for the Corp. and was the sole signator) to which the bank manager refused access. Next thing that occurred was timely notice of the initial meeting of directors. D failed to show for the meeting. D then withdrew 1500 USD from the account for his services. A few weeks later D receives a statement in the mail saying the monies remaining in the account were withdrawn by A and B and the account subsequently closed.

Questions: Can D be held criminally liable for withdrawing the 1500 USD? Is D entitled to the monies in order to prevent undue enrichment of A and B?


Asked on 6/14/08, 12:38 pm

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: NY Corporate Law

This question reads too much like a law-school hypo. If you are not a law student trying to get "expert" answers to exam questions, you need to consult an attorney and provide far more information than you have provided herein; feel free to give my office a call M-F 9:30-4 to set up a free half-hour consultation.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 6/14/08, 3:45 pm


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