Legal Question in Business Law in Utah
Can i force out a corporate stockholder/owner, with evidence of misuse/fraud with company funds?
Asked on 7/03/14, 6:33 pm
1 Answer from Attorneys
Alvin Lundgren
Alvin R. Lundgren, L.C.
Shareholders can force out a director/officer for fraud and misuse, but cannot take their sahres from them unless those shares acquired by fraud. In your situation shareholders can take action against the malfeasing owner to wrest control from him, but unless there is fraud in his acquisition of shares, he will still have his shares - unless there is some provision in the governance documents preventing this.
Answered on 7/03/14, 9:13 pm
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