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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 111654
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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Five years ago I started a Medical corporation. I have added

Resolved Question:

Five years ago I started a Medical corporation. I have added three more shareholders to the corporation and about to add one more. Recently, the corporation had been valued at 12 million dollars. Would it be illegal if the other shareholders dissolved the current corporation and transfered all assets and liabilities to another corporation only for the purpose of excluding one of the shareholder's share of the value of the company? Would there be any grounds for a lawsuit to capture back their share and also penalties for malicious intent?
Submitted: 5 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 5 years ago.
The shareholders cannot dissolve a corporation and exclude a legal shareholder from their share of the proceeds from the corporation. While the majority of shareholders can vote to close the company, if they do not pay everyone their shares, the party who does not get paid would have a suit against the company and other shareholders.


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