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    0 Replies Latest reply on Aug 25, 2009 10:29 PM by wallace7777

    C-Corp and President Fiduciary Duty

    wallace7777 Newbie
      Let me try to make this brief, I have a friend that is in a business in Texas that went to get their minutes of the meetings and bylaws signed(hasn't happened since day 1 and they have been in business for 15 years). In the process the partner that is the VP and Secretary found out the other partner, who is the President and Treasure, has been writing checks to himself, bought a car in the company name and parked it at his house never using it for company business and the VP nor anyone at our company has never even seen the car and didn't know he had purchased it until that day but writes it off on corporate taxes. I have an ex employee that said he was out to dinner with him and his fiance and the President showed a picture of the car to friends and said he bought it for her. He also paid himself more and takes double the bonuses, using corporate credit cards for decorating his home and other personal use for travel etc. all without the VP's consent or knowledge. The VP/Sec went to a meeting to get things settled today and threw everything on the table. The attorneys look at him and said the President can do what he wants in a C corp and the VP that has equal shares in the company has no say. They have never even signed the bylaws and I know thus is shocking, the President is the one that hired the attorneys for the company.

      Are they right, he has no recourse?

      Is this not considered Breach of Fiduciary Duty, Larceny, Tax evasion corporate and personal, and lying on a government form? If he doesn't I am shocked!!!!!!!!

      Thanks for any and all replies!