Legal Question in Business Law in Nevada

I was employed at a small company for 5 yrs., at the end of my five years, instead of giving me a bonus check they gave me 10% of the company. I still hold the certificate of stock. In August of my 8th year they laid me off. One month after I gave them a chance to buy me out of my 10%. They laughed at me and said they restructured and I was sh*t outta luck. I have been told that I will not recieve a K-1 for Jan-Aug. of which I still owned part of the company. Is it legal to take that away from me with no notice. And shouldnt I get some sort of tax paper for this? Can I legally file my taxes with out this?


Asked on 1/04/10, 11:49 am

1 Answer from Attorneys
Randy Creighton Black & Lobello

As a registered owner of stock in company, you are entitled to review the records of the business. This review would include any change in ownership, issuance of stock and any related transactions. If the company is not allowing you proper review, you can file a lawsuit in court to get such access.

Nonetheless, this company cannot strip you away of your 10% ownership without in some way compensating you for this amount. Further, the company (for the most part) cannot issue more stock to dilute your 10% ownership share. In this regard, if any of these actions were taken, you probably have a lawsuit against the company.

Lastly, with regard to the tax situation, you can legally file your taxes but you may need to amend them when you determine what exactly your ownership is in the company.

If you have any questions please contact me at [email protected] or (702)318-5053.

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Answered on 1/11/10, 9:14 am


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