Legal Question in Business Law in Texas

Investment returns from company husband works for

My husband and 10 others formed an aviation company. Different ammounts of money from all employess were invested. The main investor is the president. After nearly 2 years, no returns (or losses) have been issued, no balance sheet has been distributed to employee investors and no idea of how the company is doing and how much money is being made (or lost). We, at this point, do not even know how much of the company we own. What are our resources to turn the hand in our favor. In other words, how can we find out, forcing the issue leagally, to make the company turn over profit and loss statements, or tax returns or SOMETHING that we can see how and where the company is making and spending money. My husband is treated as an employee, as the rest of the investors are. We are not sure who, besides the president of the company knows the financial workings of the company. He does not disclose numbers when asked. Is there a law that requires companies (this is a corporation) to produce quarterly statements, or something of that nature? Thanks for your time.


Asked on 10/08/03, 7:43 pm

3 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Investment returns from company husband works for

Are there any documents at all that say what the money was for? Were any stock certificates issued? Anything at all that memorializes the fact that money was paid into a business entity?

The answers to the above questions will determine what the next steps might possibly be.

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Answered on 10/08/03, 8:21 pm

Re: Investment returns from company husband works for

Do the Articles of Incorporation say who contributed what? Do the Articles say whether you are a shareholder, director, officer, etc?

For example, if you are a shareholder, you may be able to inspect the books, if you meet the requirements in the Texas Business Corporation Act.

You should discuss this with an attorney. There are more details your attorney will need to ask so that she/he can best advise you.

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Answered on 10/08/03, 10:07 pm
Barbara Lamar Law Office of Barbara Lamar

Re: Investment returns from company husband works for

As you will have seen by the two answers that were posted prior to this one, more information would be required in order to give you a meaningful answer. I agree that you should probably consult a lawyer, but you can do some detective work yourself first, which will save time and legal fees by giving you a more complete set of facts to take to the lawyer. You can get information about the corporation's directors from the Texas Secretary of State's website at http://www.sos.state.tx.us/corp/index.shtml Click on SOS Direct (left side of the screen) to do a search using the corporation's name. Each search costs one dollar, which you can pay by credit card. If you would like to take a look at the Texas law that governs corporations and shareholders, you can view this online at http://www.capitol.state.tx.us/statutes/br/br0000200toc.html

As you will see, shareholders do have rights, and Texas court decisions have recently been moving more towards giving minority shareholders more rights than they have enjoyed in the past.

Barbara Lamar

Law Office of Barbara Lamar

127 Lewis Street

San Antonio, TX 78212

210-223-9389 (San Antonio)

512-376-4235 (Austin / San Marcos)

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Answered on 10/08/03, 11:38 pm


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