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Ask Maverick Your Own Question
Maverick, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 6391
Experience:  20 years of proefessional experience
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Question regarding credit card case

Customer Question

question regarding credit card case
Submitted: 9 months ago.
Category: Consumer Protection Law
Expert:  Maverick replied 9 months ago.

Welcome to Just Answer! My name is***** give me a few minutes to review your inquiry. Thank you for your patience.

Expert:  Maverick replied 9 months ago.

*What State are you located in and asking about?

*Can you please give us more background information so we can better assist you?

*Can you please state your specific legal question so we know what type of answer you are looking for?

*What have you tried on this front so far?

Customer: replied 9 months ago.
Question is of a general nature: As the banks have admitted illegally manipulating the LIBOR rates, and have paid millions in fines, does this illegal act automatically suspend their charter and suspend their capacity to act as a corporation in good standing?
Expert:  Maverick replied 9 months ago.

While your thinking is correct that there generally is a prohibition against establishing a corporation for illegal purposes, the subsequent engagement in illegal activity does not automatically suspend its charter or its ability to act in good standing. The Secretary of State's office must act to make this happen. You may wish to file a complaint with their office and/or with the Attorney General's office.

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Customer: replied 9 months ago.
Does the fact of admission to illegal activities, outside of, and prohibited by its charter, place the corp in the position at that time of having "unclean hands", placing it immediately in an ultra vires position, and thus losing its capacity to act under its charter?
Expert:  Maverick replied 9 months ago.

It may have that effect; but not without some governmental action to bring it about first. In other words, to use this argument in an ancillary civil action, you will need to have formal written proof that the State has suspended its charter.

Customer: replied 9 months ago.
it is your opinion that no illegal action by a corp can automatically suspend its capacity unless formally done at some future date? In the case of where a bank stole depositors funds, or was guilty of "conversion", embezzelment etc., there is no remedy for the victim without an official ruling, even though the offending bank has been caught in the theft, and admitted to it?
Expert:  Maverick replied 9 months ago.

I think that you may me reading way to much into my answer. You asked about whether a corporate charter is automatically suspend because a corporation acts illegally. My answer to that question is "No". But, that is not to say that yo have no civil claims that may be brought against the corporation for wrongs that you may have suffered. A corporate charter does not have to be suspended in order for you to pursue those claims.

For your benefit, I will opt out so that you may get a second opinion....