Legal Question in Business Law in Utah

Can a company treat shareholders differently?
Can a Company sell trade stock for cash, and then select one or two of the shareholders to apply for credit with the company, have the company guarantee the loan and give the idividuals that put up their credit, more shares without offering the same deal to the rest of the shareholders? The company is now paying the ''loan'' back on behalf of the shareholder, (building their credit) and won't pay dividends until the loan is payed in full. The one who put up his credit will have ''bought'' 30% of the company, with the company footing the bill with disregard to all of the other shareholders. (alot of us have strong credit, over 750, and would have liked the same offer)

Does it make a difference if the company is an LLC, or Corp?

Does it matter what state? (Utah)

What recourse do the rest of us have against the company or the individual?

Asked on 4/09/09, 11:04 pm

Alvin Lundgren Alvin R. Lundgren, L.C.

0 users found helpful

0 attorneys agreed

Re: Can a company treat shareholders differently?

It makes a difference whether llc or corp. Read the bylaws, they should address this situation.

If the board of directors or managers violated the bylaws you can file suit against them.

Answered on 4/11/09, 1:13 pm

Keywords

Match Any Match All

Country

State

Area of Law