How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ellen Your Own Question
Ellen
Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
9968427
Type Your Business Law Question Here...
Ellen is online now
A new question is answered every 9 seconds

Colorado C corp. My father is owed 600,000 from loans to company.

This answer was rated:

Colorado C corp. My father is owed 600,000 from loans to company. Company ready to go under. If he has resigned from the board, and not employed yet owns about 12% of stock (and wife owns another 12%), is he still "last in line" relative to other creditors when liquidating assets?

Hello,


Thank you for your question. I am happy to assist you.


Unfortunately your father would still be considered an "insider" and thus would be behind the other creditors in repayment from the assets. The fact that he has now resigned is not relevant. The fact that your father was a board member is sufficient in and of itself to qualify him as an insider.


I hope that the information which I provided was helpful to you.


Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER


Please click ACCEPT so that I can get credit for my work

Bonus and Positive Feedback gratefully accepted!


THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE

Ellen and 6 other Business Law Specialists are ready to help you