I am a shareholder in a corporation and the other shareholders want to take out a loan for the corporation. The loan company want my social security number and I was adivise since I was a shareholder of a corporation I shouldn't have to provide it. The corporation and property acts as collteral. Do I need to provide my SS# if,so why?
2 Answers from Attorneys
It seems that they want your SS# as part of a personal guarantee. Something does not seem right here because the directors arrange for business operations , not the shareholders unless they are the same because it is a small closely held one. The giving of your social security number may lead you down the path of piercing the corporate veil and subjecting you to personal liability.
I agree with Mr. Green. You should not be providing your personal information unless your are guaranteeing the underlying obligation or are a coobligor.
Related Questions & Answers
Is it considered collusion when I decide to leave a company and another employee... Asked 4/04/13, 9:38 am in United States California Business Law
I with another person had a corporation a 5 years ago and signed up for a merchant... Asked 4/03/13, 1:10 pm in United States California Business Law
I'm looking for where I might read to support my issue. This is a business/public... Asked 4/02/13, 10:47 pm in United States California Business Law
I own a minority shareholding in a small limited company. How do I sell my shares... Asked 4/02/13, 6:07 pm in United States California Business Law
I recently relocated my massage & skin care business from the Financial District... Asked 4/02/13, 1:31 pm in United States California Business Law