Legal Question in Business Law in North Carolina

Can I recover any portion of an original "seed" investment of $20,000 - 5 years ago that is still in existence but has not paid any dividends?

Asked on 9/16/14, 6:21 am

1 Answer from Attorneys

Jeremy Canipe The Canipe Law Firm, PLLC

Thanks for your question. At this point, you have not provided enough details on the deal between yourself and the company to provide a definite answer. Is there a written agreement? Was this a loan? If so, were there definite payback terms (interest rate, payment amounts, when you were to be paid back, etc? Or, was this money a capital contribution where you became a part owner of the company? If so, are there provisions in the LLC operating agreement or shareholders agreement dealing with return of capital or a buy-back provision? A buy-sell provision? Or was this a loan that could be converted into an ownership stake in the company? These are a few of the initial questions what I would have. Glad to discuss in more depth but in any event I'd suggest setting up an initial consultation with an experienced business lawyer, and please be sure to bring all written documentation to the meeting.

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Answered on 9/16/14, 6:28 am

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