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I didn't ask my question properly. The business is registered in Nevada. All executives live and work in California. The business is registered as a foreign business in California. The indemnification agreements in the buy sell agreement for the business state that the business may not be qualified to operate as a legal business in California.
So, my question is:
1) what would allow the business to operate legally in nevada but not california? This could be something as benign as the rules re. Boards of Directors. For example, the company has a Sole Director who is also Sole Shareholder and CEO, but the company is a subsidiary of a Delaware company.
2) The company recently ventured into gambling.
3) The company makes loans to its director
4) The company did not pay taxes for two years in California.
I am trying to determine what freaky moves this company is pulling so we know which rock to uncover. Need to finish up this case. Thanks.
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