Legal Question in Business Law in Illinois

MY brother-in-law and I set up a class c corp.20 years ago. Ten years ago He made a contract with himself and signed it .The contract is to re-emburse 500.00 dollars per month for his medical insurance.Our decree is to be equal partners 50/50. The monthly check he draws from comes from the companies account.I,the president never signed the contract only he signed the contract.So far the amount he has taken is 50,000 dollars.I have recieved NOTHING.I have tried to reason with him about the unfairness.....what should I do ...My mental health is failing do to this issue....thanks for your expertise in this matter....John

Asked on 1/10/12, 6:01 am

Sanford M. Martin Sanford M. Martin, P.A.

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Unless you and your brother have signed a corporation agreement which gives

one shareholder the right to execute such contracts between the corporation and

a shareholder, you have a right to require either that the contract be voided and

that you be compensated, or that the insurance payment be included in his

corporate compensation. It appears that you should have resolved this many

years ago. Equal owners of a corporation are entitled to equal share of profits;

however, the granting of the insurance benefits caused an unequal sharing of

net corporate profits.

Answered on 1/10/12, 6:22 am

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