I entered into a partnership in the state of DC, We agreed to put in $60k for 19% of the shares of the corporation. the shareholder agreement says that the corporation has no liens (verified this), no other outside contracts with anyone that could affect the corp.
now fast forward to 3 months later, We finish building the store, run it for 2 months buisness is doing good so far.
We Find out that the other partner entered into a contract before the corporation was formed, where he borrowed $50k with EXTERMELY high interest per month from another person. the contract says that if he misses payment by 2 months that the other person will take full ownership of the store. Our partner is behind on payments enough to active this clause in the contract. now the lender wants to take the whole store. Is our investment protected by the corporation? the corporation was formed after this agreement.
I dont know exactly what the lender's contract says, but it might have said that our partner was not allowed to ever form the corporation or sell shares.
how much danger are we in losing our business and getting nothing?
now fast forward to 3 months later, We finish building the store, run it for 2 months buisness is doing good so far.
We Find out that the other partner entered into a contract before the corporation was formed, where he borrowed $50k with EXTERMELY high interest per month from another person. the contract says that if he misses payment by 2 months that the other person will take full ownership of the store. Our partner is behind on payments enough to active this clause in the contract. now the lender wants to take the whole store. Is our investment protected by the corporation? the corporation was formed after this agreement.
I dont know exactly what the lender's contract says, but it might have said that our partner was not allowed to ever form the corporation or sell shares.
how much danger are we in losing our business and getting nothing?