Legal Question in Business Law in Georgia

I signed a contract for a T1 line with a telephone company as CEO of a company that was sold 4 years ago to a guy who still owns the company and is about a mile down the street from our building. The company was a corporation and I was the only shareholder. He still has the company active and he is now the only shareholder according to Georgia Secretary of State website. I still own the building and have been still paying for the service with the check of another corporation that I own. However, I now want to switch services. I did not sign a personal guarantee when I signed the contract. There is a year remaining in the contract. Can they hold me responsible?


Asked on 7/05/11, 9:29 am

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

I don't think any lawyer would attempt to answer without seeing the original contract, and the sales contract for your business, and inquiring into why you'd pay for a phone line for someone else with a check drawn on the wrong corporation.

That indicates a likely comingling of personal and multiple corporate assets, and also tends to tell me that you have done much of this without advice from lawyers and CPAs, and that you thus may be liable.

Every corporation should have a lawyer, and I am wondering why you have not had him review these things.

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Answered on 7/17/11, 12:08 pm


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