If Im a minority owner of our company and the majority owner took a loan and did not disclose this, am I liable for the loan if the company cannot pay it off?
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If Im a minority owner of our company and the majority owner took a loan and did not disclose this, am I liable for the loan if the company cannot pay it off?
The loan was taken by my brother (51%) owner from my parents living trust. I am 24.5% owner and we have another partner who is 24.5% wonder as well.
Asked on June 25, 2012 under Business Law, Oklahoma
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
The issue that I see is whether the loan was a personal loan to your brother and the other partner or was it a loan to the company itself? If a personal loan, you are not responsible for the loan.
If the loan was made to the company and the company is a limited liability company or a corporation, then you would not be responsible for repaying the loan. If the company is a partnership then you would be. I suggest that you consult further with a business attorney about the matter you are writing about.
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