Legal Question in Business Law in Pennsylvania

Business Assets Distribution in
I am a minority shareholder in an ''S'' Corp. I own 13%. The majority sharholder recently sold out. After the sale, the new owner sold the life insurance policy on the old owner and received $820K for it. Since I own 13% of the company and I helped to pay for this policy over the years, am I not entitled to any of this money?

Initially our accountant said yes. Now he is saying no after speaking with the majority owner.

I also asked the new owner if the old owner was entitled to any of the money and he said that the old owner should have thought about that when he was in the negotiations for the sale of the business.

Asked on 9/22/06, 10:13 am

Gerald Hershenson Law Office of Gerald M. Hershenson

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Re: Business Assets Distribution in

Assuming the Corporation is the owner of the insurance policy, you would be entitled to your share. I suggest you consult with legal counsel.

Answered on 9/22/06, 1:27 pm

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