Legal Question in Business Law in Utah

A board member and chief marketing officer of a billion dollar + corporation borrowed $100K from an employee. The loan is now in default. What recourse does the employee have with the corporation?

Thanks,


Asked on 4/05/11, 12:39 pm

2 Answers from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say the following. The promissory note needs to be examined. Unless the corporation acted as a guarantor or is somehow otherwise involved in the loan transaction, it will not be liable. 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 4/05/11, 12:57 pm
Alvin Lundgren Alvin R. Lundgren, L.C.

It has nothing to do with franchises. The default provisions of the written loan agreement apply. If there is no writing, it may depend on who wound up with the money. If the officer deposited the money into the corporation accounts, then the corporation may be liable. If the money went to the officer personally, then he is probably the only responsible party. There may be other options depending on the facts

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Answered on 4/05/11, 1:11 pm


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