Legal Question in Business Law in Rhode Island

Corp Debt.
I'm listed as Pres.of a Mortgage Broker Co. The Company is registered in R.I. and had office locations in Ma.and New Hampshire.
The C.E.O. of the Company ( wrote all the checks and handled all the bookeeping and accounting for the Company,however he use my name as pres to secure some credit.He was a signer on the Corp checkbook for the past 4 years.
In Aug.he decided to get out of the business. I'M now trying to pay off some of the debt. During the 4 years in business I received 10% of the profit, the other 90% was controlled by him. Im in the process of closing the last remaining office. \People are now calling my home re-debts. Can I take any legal action with him or the creditors.
Thank You
Bernie Twomey

Asked on 2/11/08, 2:45 pm

2 Answers from Attorneys

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Re: Corp Debt.

First, assuming the corporation has not been dissolved, you should have a corporate number and instruct anyone who calls your home to call your office and leave a message.

One thing you could do is change your home number to unlisted.

If the owner of the business did not operate in a business like manner, he may have personal liability.

Why are you winding up the business? why isn't he doing it. I would suggest you contact an attorney with regard to everything.

As to creditors, they can not call your home if you have a business office and the debt is only related to the business not you personally.

You may have a claim against your former boss/partner or whatever he was if he took funds he was not entitled to use and borrowed money based on your name without your consent.

Good Luck.

Answered on 2/11/08, 4:27 pm

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