Legal Question in Business Law in New York

corporation rights

Hello,

6 friends and family bought hunting property,our lawyer set us up as a corporation and each of us owns a share.Each member is considered a share holder and club member.Our bi-laws mention club members but we agreed shareholders and members were the same.1 member listed our property on the real estate market,and we turned down an offer.This member resigned as a member.In the bi-laws it is stated you get back you inital investment not land value.We wrote him a check for this amount but he wants one sixth of the purchase offer.Can we legally inform him to start court proceedings or put a time limit as to the value of his stock? This has been going on for 18 months now.

Thank you


Asked on 3/28/08, 10:50 am

1 Answer from Attorneys
Nancy Delain Delain Law Office, PLLC

Re: corporation rights

The answer to your question depends on how your bylaws and stockholders' agreement are set up. It also may depend on when the member resigned in relation to the land deal.

A corporation must act according to its bylaws and must treat the stockholders according to its stockholders' agreement.

Feel free to contact my office if you wish to any further help on this matter.

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. THIS POSTING DOES NOT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP BETWEEN US. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

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Answered on 3/28/08, 11:13 am


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