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QUESTIONS FOR A LAWYER5/11/2013The Problem: Fred Furrer

Customer Question

QUESTIONS FOR A LAWYER
5/11/2013
The Problem: Fred Furrer was found “guilty” of “theft by over-compensation” from HYRAD Corporation while acting as its President, CEO and COB. He was ordered to pay $1M back to the corporation, which he doesn’t have. In fact, the total of Furrer’s personal assets other than his ownership interest in HYRAD Corporation is less than $0.5M. HYRAD Corporation was worth at least $5M at the start of the derivative action lawsuit in 2007, but is nearly worthless now. What should he do?

1. What prevents Furrer from being indemnified, either by the Indemnification Clause in the Bylaws, or by Mandatory Indemnification?

2. Is taking Furrer’s personal assets the only way to satisfy the $1M money judgment? What about unpaid compensation due from HYRAD, credit for companies taken from Furrer and given to HYRAD, or exchange of HYRAD stock?

3. Has Furrer lost all control of a company that he owns 70% of? In other words, have the minority shareholders taken over total control of HYRAD Corporation?

4. Is Furrer entitled to a re-trial since the Circuit Court Judge has admitted that he is unfamiliar with business law? In other words, since it wouldn't be fair for the Judge to be taking counsel from the plaintiffs’ attorney, shouldn't Furrer have an opportunity for an impartial trial?

5. If the derivative action lawsuit provided no benefit to the corporation, shouldn’t the minority shareholders be paying the litigation costs for both sides, per state statute?

6. Is there a bankruptcy option that would permit a gradual payback of debts without losing assets?
Submitted: 4 years ago.
Category: Business Law
Expert:  Wendy-Mod replied 4 years ago.
Hi, I am a moderator for this topic. I've been working hard to find a professional to assist you right away, but sometimes finding the right professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.


Thank you!
Wendy

Customer: replied 4 years ago.

Hi Wendy,

 

Thank you for your update. I can wait. There are actually six questions here. You can separate them as you wish. I am a monthly subscriber, and I believe I have unlimited question/answer access, right? I have received answers from, I think, three different experts in the past. All were good. I just want to get the most accurate, useful answers I can get to each of these questions. I expect that there will be a short thread of dialogue with each question, since they are not simple questions. If you can find one legal expert who can handle each question one-by-one, that would be best.

 

Yours truly,

 

Fred XXXXXX

Expert:  Fran-mod replied 4 years ago.
Hello Fred,


Thank you for your patience. We will continue the search for a professional for you.
Customer: replied 4 years ago.

Hi Fran,

 

Each of the questions posed require a slightly different expertise to answer properly. At the very least, here are the categories that I see:

 

1. Corporate Law

 

2. Rights to a Fair Trial

 

3. Bankruptcy

 

Hopefully, you have such experts on staff.

 

Yours truly,

 

Fred XXXXXXX

(XXX) XXX-XXXX Cellular

Expert:  Wendy-Mod replied 4 years ago.
Hello Fred,

Thank you for the additional information. We will try to find a professional who can answer all these questions but you might want to try to break up this question into new questions if you can't get a full answer here.

Thank you again for your patience.

Regards,
Wendy
Expert:  Wendy-Mod replied 4 years ago.
Thank you for your patience, your business is very important to us, we are waiting on the professional with the right expertise to come online. Please let us know if you would like us to continue searching for a professional or if you would like us to close your question.

We appreciate your understanding!
Wendy
Customer: replied 4 years ago.
Hi Wendy,

I don't want you to close the question (actually multiple questions). I think what I need to do is separate the questions now. I had never intended for this to be considered as one question. I will rephrase them one at a time so that there will be multiple questions to get credit for. So, I guess that means you should "close" the current question, and I will start over. Thanks.

Fred Furrer