Legal Question in Business Law in Wyoming

Partner leaves, starts new company,takes former companys jobs

My partner started his own company. We divided

the company assets and bills owed. his first

three jobs were jobs scheduled for our company

that he no longer works for. Now befor he signs

over the stocks to me and pays his half of a

$10,000.00 comercial loan, he wants an aditional

$20,000.00 . What action may I take in this

matter ? Was his taking jobs illegal

Asked on 12/31/00, 9:04 pm

1 Answer from Attorneys

Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Partner leaves, starts new company,takes former companys jobs

There are no "partners" in a corporation. Only shareholders.

A corporate officer has a fiduciary duty to the company not to take deliberate action to harm it. For an officer to steal business from the company for himself is improper procedure and subjects him to liability to the corporation and its shareholders for his breach of fiduciary duty.

He can be required to repay the losses to the corporation which resulted from his breach.

Consult a business lawyer in your town. His actions appear unwarranted.

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Answered on 1/04/01, 8:44 am

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