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There is a board of directors, but they are mostly made up of his buddies. I am not sure how to address it with them at all. I am the sole counsel.
The hidden assets would be in this form: the CEO is owed backpay from the company during a time in which they were married. He is going to get a piece of that backpay as a cash bonus when the company sells. I suspect the ex-wife does not know of this arrangement with the company. In my eyes, she is due half of the cash bonus.
Thank you for your follow-up.You are correct, she is due that amount. But since you aren't her attorney and she isn't on the board, you do not owe her a duty to inform her of this withholding. As in-house counsel the most you can do is formally advise the Board at a monthly meeting or a special meeting regarding this behavior and the potential risks to the company if this deception is ever found out by the spouse. Explain that if she subpoenas the records of the business including wages or 'backpay', the company and you would have to comply so then court costs, legal fees, and other expenses could be borne by the company in defending this situation that the company will ultimately lose. This will place you on record within the company and absolve you personally of liability. Then it becomes the Board's issue as to whether to take this further or not. It is not an ideal solution, I agree, but this does not violate your duty to the business and it permits you to act in a responsible manner.Good luck.
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