Hello Patrick, thank you for the post. If the agreement not to withdraw any funds from the LLC until it was profitable is in writing, this would be considered embezzlement as it marks the unauthorized (and dishonest) appropriation of company assets by one whom was entrusted with them.
With respect to the indemnity, was this a court order?
There is nothing in the agreement that states that we wouldn't receive any more checks until we become profitable. It was decided at a board meeting between the five of us. It is in the official record of the meeting we had. I didn't even know they were paying themselves until I was called to a meeting to see some of the figures they had listed in a record book.
My contribution to the business was technical. I was in charge of setting up Injection Molding Machines with a good process to make parts to print for the customer. This was a secondary job to my primary job. I wasn't there unless they needed a mold set up , or they were having process problems.
We had a company that owed us $30,000 go into chapter 11 and stiffed us. We wereever able to recover after that.
As far as the indemnification. This is in the context of the summons I have received. I am not even sure what this means.
During the signing of the papers to get the loan from the bank, we all had to give our finiancials in which my wife would not sign. A big fight insued in which the number holder stated that the bank would come after her for the remaining looan balance, and she was OK with that. My wife ended up signing the papers and now we are in a mess.
Please answer reply,
Can I answer this complaint on my own?
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