Legal Question in Business Law in South Carolina

Is it illegal for a company shareholder to issue unauthorized payment of cash to be wired directly into the account of the mortgage company he owns without knowledge or approval of the CEO


Asked on 4/07/11, 6:48 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say this. Shareholders have no right to do what you describe, unless proper formalities are followed by the directors and officers of the corporation (such as a written shareholder loan, bearing adequate interest, etc.) Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 4/08/11, 8:11 am


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