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  1. #1
    Join Date
    May 2014
    Posts
    1

    Question Property Dispute with Minority Shareholder

    Hello everyone. I have a question regarding my corporation in Texas.


    I founded a business few years ago with two other co-founders. The first co-founder and I collectively own 80% of our corporation, and the second co-founder (Co-founder X) owns 20%. We purchased a property in Texas for our business few years ago.

    Recently, we found out Co-founder X (the one owning 20% of the corporation) put the property loan and the property itself under his name during purchase. He is currently planning to sell the property and pocket all funds from the sale.

    100% of the down-payment came from company’s business account and each loan payment is made using company funds.

    We tried negotiating and even settling the matter with Co-founder X, but he is not cooperating. We are forced to take this matter to court, but are not sure how to proceed.

    Please advise us where we should take this case and what kind of lawyer we should contact. Will this case go to the local city or county? How can we prevent the sale of this property until the case is settled?


    Thank you for your time.

  2. #2
    Join Date
    Nov 2013
    Posts
    7,056

    Default Re: Property Dispute with Minority Shareholder

    I'm not familiar with the Texas court structure and I don't know how much money is involved but I would say this has to be filed in a county court.

    However, if your cofounder diverted corporate funds for personal use he has committed several crimes like theft and fraud. You can go to your county prosecutor and file a complaint. If your cofounder goes ahead with the sale of the property, it will only make it worse for himself.

    How could this happen without the majority partners knowing? Are there no loan agreements, deeds, corporate resolutions?

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