California  |  Securities Law

Legal Question

Asked on: 4/08/13, 7:04 am

Hi,

I've been doing software developement and consulting for a CA __ Inc. (which is in Suspended status for 2 years). This privately held company offers me a share certificate as a reward for my contribution. Is this legal? How can I protect myself and make sure the certificate is valid?

Thank you! Any answer is much appreciated! I'm not sure if it matters - I'm not a US resident, nor ever had the US citizenship

1 Answer


Answered on: 4/08/13, 8:47 pm by Bryan Whipple

A corporation with "suspended" status is not quite, but usually on the road to, becoming defunct. I would recommend taking your compensation in cash. It's probably legal to give you stock, but the chance that it'll be worth anything is quite remote. Also, if the corproation is an "S" tax-status election corporation (ask them), they cannot have a nonresident alien stockholder.


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Bryan R. R. Whipple, Attorney at Law P O Box 318 Tomales, CA 94971-0318

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