Legal Question in Business Law in Montana

I worked for a small start up privately held company in Montana from June 2005 - October 2006 when I got laid off along with all other workers. In May 2006, I spoke to the President of the company about getting some stock for all my contributions to that point, and this was addressed by the board of directors and approved to grant me 60,000 shares of common stock, and this approval was sent to me via email from the President. I was told I was granted the shares, but they would have to determine how to best give me the stock as to not give me a large tax burden. At the time, I believe the value of the stock was roughly $1 share. Since this time, there have been numerous other offerings and more stock has been sold, and converted, only 2 of the remaining board members are still on the board (president and his dad), and new investor owns a majority of the company.

The company is finally headed in the right direction and when I asked the president about my stock, he said they probably won't be available to me. Therefore, I am wondering if an email is a legal document and would I have any recourse to get the stock that was given to me. I assume it was also recorded in the board meeting minutes, but I do not have access to these.

Thank you for your assistance.


Asked on 12/01/10, 11:52 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can't really say without looking at the specific wording in the email and the board minutes. But if what you say ultimately is true, you have a claim for the stock that is probably worth pursuing, especially if there is a market for the stock in question. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 12/07/10, 10:51 am


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