How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Infolawyer Your Own Question
Infolawyer
Infolawyer, Attorney
Category: Business Law
Satisfied Customers: 57709
Experience:  Experienced lawyer
11313492
Type Your Business Law Question Here...
Infolawyer is online now
A new question is answered every 9 seconds

My family and i have a corporation it is a s corporation we

This answer was rated:

my family and i have a corporation it is a s corporation we had a family issue in which there was a 50 50 split one member from the other side sold her shares to the other side breaking the time so the judge said they had majority there by they took control leaving my sister and i out in the cold they refuse to advice us on anything they javent sent us the tax reports or for that matter the k 1s any dividens or for that matter the amount of tax we owe we cant even do our taxes is there anything that can be done
JA: What state are you in? And have you consulted a local attorney?
Customer: we are in texas and just so you know i myself am the largest share holder with 34 percent and my sister has 8 percent we have been looking for an attorney to help us
JA: Has anything been officially filed? If so, what?
Customer: the other half brought a lawsuit against my father and took everything from him this was his business that he and i started but because it was a 50 50 split it was at a stand still until my sister sold her shares to them and at that point the judge ruled in their favor they were supposed to buy our shares out by now refuse to and we are allienated from the goings on of the business it is.my understanding that to have a majority they have to have 66 2/3 percent which they dont also that the k 1s need to be paid by sept 15th
JA: Anything else you want the lawyer to know before I connect you?
Customer: no i guess thats it
Normally simple majority is needed unless governing document provides otherwise. In any event minority interests need to be informed and not diluted. You can demand accountable reporting and involvement. If needed, martindale.com and findlaw.com are both excellent lookup directories. Both highly rated. Both used by lawyers. Easy to search and find local options. You want to prepare your case by creating a time line starting from the earliest event. For each event, write down key details and witnesses and if there is a document that relates to it, save it and refer to it. This timeline can be very valuable in narrating your case and presenting it later in a concrete and specific way. By being prepared and pressing your claim, the other side should feel the pressure and consider the risk of losing and legal fees. That realization can help bring about a settlement! Please let me know if the reply is acceptable by responding "yes" or "acceptable"
Customer: replied 1 month ago.
but if they don't provide the k 1s by sept 15th is that ground for violating there fudisiary duty and according to what i have ben told they need to possess 66 2/3 percent to be a s corporation and they need to have yearly meeting which there has never been one
It is a violation to fail to file timely and they need majority to act and need to act in best interests of all shareholders and interested parties and can be held accountable as mentioned!Please let me know if the reply is acceptable by responding "yes" or "acceptable"
Customer: replied 1 month ago.
if you were a lawyer helping me would my sister and i have a case that we could possible win in court
Absolutely and more often a good lawyer would look to settle without incurring high fees and lost time. Good luck.
Kindly rate me five stars.
Leaving a bonus after rating is very much appreciated.
Infolawyer and 2 other Business Law Specialists are ready to help you