Legal Question in Business Law in Louisiana

misuse and taking of corporate assets

I am a 20% shareholder in a small corporation. There are 4 more shareholders, each having 20%. The acting president who is a shareholder removed all money from checking account by writing himself a check and listing it as loan to shareholder and closing account. The transaction was never disclosed to or approved by majority shareholders. Only one other shareholder knew of his actions. He also took possession of all equipment owned by the corporation. He and one other shareholder have another business that they are using equipment for, we don't know where money went. We were able to get one piece of equipment back and are trying to keep corporation viable with our own money until we can get money that was taken. He is now trying to have corporation dissolved and claims money taken was for payment due to his other business for work done, which is not true. It has been 18 months and our attorneys still have not been able to get money or a court date. Would his actions be considered criminal? If so, what actions would we have to take? We do not want to dissolve business. How do we as majority shareholders, 60%, remove them as shareholders?


Asked on 5/26/09, 2:16 am

1 Answer from Attorneys
Nick Pizzolatto, Jr. Pizzolatto Law Office

Re: misuse and taking of corporate assets

If it has been 18 months since your attorneys have tried to rectify this situation, then something is wrong. You should sit with the lawyers and if not satisfied by their explanation, seek another opinion from another attorney. This site can help in many things, but I believe your problem is too complicated for online. And yes, if the facts warrant it, there could be theft charges.

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Answered on 5/26/09, 7:11 am


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