Defective Corporation

Jayne and Jed are married to each other. They formed a corporation for their machine shop two years ago, without using a lawyer. The business manufactures agricultural parts and has employees, and does earn some money, but they never became wealthy. They failed to observe all the corporate formalities over the last two years and tended to pay all their personal expenses out of the business checking account. Machine shops rarely need groceries, baby diapers or dinner ware, but this corporation paid for them! They never held corporate meetings, and did not sign minutes of the corporation showing actions without a meeting or formal elections of officers. All they did after filing papers with the Secretary of State and receiving their Certificate of Incorporation was to sign forms at their bank that Jed was the Treasurer and President and authorized signer for checks and for loans.

One year ago, Jayne and Jed divorced, again, doing it themselves without a lawyer. Jayne received a mortgaged house and Jed got all the stock in the business corporation that owns the machine shop and all its contents and all its bank accounts. Jayne has no more ownership in the corporation, and is not an officer or director.

Jayne has now hired Theodore, your supervising attorney, to collect past due property settlement money, child support, and alimony in the amount of $25,000. Jed managed to trick Jayne by making sure the money and most of his personal goods are owned by the corporation, not personally. He pays himself no salary and pays himself no dividends from the corporation, but does pay personal bills from the corporate checkbook. An attorney named Ray assisted Jed in doing this. The corporation now owns silver ware, china plates, a baseball card collection, a boat and trailer, a motor home, and other items not commonly used by a machine shop that creates parts for agricultural use!

What are Theodore’s options to collect the $25,000 from Jed for Jayne? A judgment was obtained against Jed, but is it collectible if he has no money or physical goods in his own name? Which options are best, in your opinion? Can they realistically get a court to pierce the corporate veil? Can they get a court to allow seizure and sale of corporate assets? Is the stock itself vulnerable to seizure and sale for the debt? Did Ray commit an ethical violation in assisting Jed to hide assets from is ex-wife?

You can leave a response, or trackback from your own site.


13 Responses to “Defective Corporation”

  1. – 100 all the best private proxies through substantial rate reductions + Very rapidly procurator serrvers!

  2. Parenting says:

    You are a very clever individual!

  3. DreamProxies – Cheapest USA Private Proxies: Elite quality, Endless bandwidth, 1000 mb/s superspeed, 99,9 uptime, Non consecutive IP’s, No usage restrictions, Multiple subnets, USA or Europe proxies – Get Now –

  4. Copyright? I want to gather stories/articles from the web and put them onto one page?

  5. otcmkts hemp says:

    296478 956784Completely pent subject matter, appreciate it for selective info . 927849

  6. 안전공원 says:

    889374 589706Completely composed content material , Actually enjoyed examining . 76899

  7. 862433 545178you use a wonderful weblog here! do you wish to earn some invite posts on my small blog? 633482

  8. 216179 910109Some genuinely good stuff on this site , I it. 780142

  9. 227697 59023Keep up the amazing piece of function, I read few posts on this internet web site and I feel that your web weblog is genuinely intriguing and contains lots of superb info. 753389

  10. 338737 588503I like this post really considerably. I will definitely be back. Hope that I can go by means of much more insightful posts then. Will likely be sharing your wisdom with all of my friends! 168328

  11. 836287 515995Thanks for the wonderful post against your blog, it genuinely provides me with a look about this subject.??;~.?? 364455

  12. diamond art says:

    648013 581946It is hard to search out knowledgeable individuals on this subject, but you sound like you realize what you are speaking about! Thanks 550636

  13. 702900 323995This internet internet site may possibly be a walk-through its the data you wanted in regards to this and didnt know who must. Glimpse here, and you will absolutely discover it. 29744

Leave a Reply

Powered by WordPress | Designed by: buy backlinks | Thanks to webdesign berlin, House Plans and voucher codes