Legal Question in Business Law in Texas

S Corporation Law and Civil Suit against Individual

We had an interest in an S Corp. One owner ran the Corp, called a meeting, then did a reverse stock split making our shares Zero and obtaining control. We filed suit for back wages and original investment. Now individual is filing bankruptcy. We are alleging fraud, misappropriation of funds (they paid themselves ''dispursements'' and not us), along with various other factors. Can we get our money back, plus the back wages we did not receive based on ''promises'' of payment when business would do better? What Texas Statutes or Laws would cover these events? Could the individual be held criminally liable? Individual has closed the business, returned any liquid assets to creditors, returned all business vehicles. There is about $40K in outstanding debt from company. We co-signed an SBA loan for the business. Can we get this individuals assets (they have property worth well over 100K) and satisfy our loss as well as the losses to the business?


Asked on 4/04/09, 12:09 pm

1 Answer from Attorneys
Charles Williamson Charles J. Williamson, Attorney At Law

Re: S Corporation Law and Civil Suit against Individual

Try actually hiring an attorney to help you. You really don't expect someone to work for free, do you? This site is for quick answers, not full up legal counseling.

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Answered on 4/04/09, 4:22 pm


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