Legal Question in Business Law in Georgia

I am an equal shareholder in an S-Corporation with two other shareholders. We are in the middle of a web development project and one of the shareholders does not wish to use her full legal name on the company website. To date, all of our paperwork including Articles of Incorporation, business licenses, bank accounts, etc. contain all of our full legal names. My first question is could this cause legal issues for the company on the basis of intent to purposely deceive, be considered a form of fraud or misrepresentation? My second question is if the company drafts an indemnity agreement which the shareholder signs that states that the shareholder will be solely responsible both financially and legally if there are any legal issues regarding the use of a nickname on the website (i.e. IRS audits, legal fees, etc.), can the company itself still be held liable or is this sufficient protection for the other two shareholders?


Asked on 8/30/11, 6:25 pm

2 Answers from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

There is no law requiring a website to list the owners. In fact, most don't.

Yes, with regard to an outside party, the company could still be held liable. The indemnification exists between the owners, not between the company and outside parties.

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Answered on 8/30/11, 6:34 pm
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Websites do not have to list owner's names. However, if a false name is used there or elsewhere that could form a basis for liability.

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Answered on 8/30/11, 6:39 pm


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