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ccyeh
Guest
What is the name of your state? California
I need legal advice for a case of small business. Please reply to me if anybody have some answers of the questions below:
Case:
Company C established in April 2003. They have issued stocks to shareholders and board members. Now some board member and shareholder would like to check the detail financial report of Company C. They believe the CEO has illegally redeem his stock.
The CEO own Virtual Capital J which is the largest shareholder of the Company C.
Q1. Before the investment, Company C needs to disclose Virtual Capital J occupied 51% shares of Company C as its responsibility, if not, the behavior is legal or not?
Q2. For New Shareholders joining, Stocks Redemptions/ Issuances, Loan from Someone, Investment and all the others regarding Company C¡¦s financial situation and meeting, does the Company C have the obligation to notify all board members? If it does, is it illegal for the CEO not notify the board members? What can we do?
Q3. About the right of the board members and shareholders, could they request the whole financial information, for example, to release financial statement, invoice record, check record (Pay Who and Pay Why), bank statement and record so forth.
Q4. Who decide the stock price, price change and amounts of issuance? Who is in charge of¡@it? Is the California government in charge of it or not?
Q5. When the shareholder redeem their stock, shouldn't them receive 1099 tax form about the capital gain of stock? The shareholder did not receive any tax information about those redeem stock, what does it mean?
Q6. CEO and CFO are both in charge by one person, is it legal or not? Who can point the position to the people? Does it legal if there¡¦s no any board meeting agree with it? If any, what can we do for it?
Q7. Last time, the shareholders tried to call a special meeting, but got company attorney¡¦s letter said that we can not do it because we did not have a letter of signatures of shareholder. What if the CEO provides wrong information to the lawyer about the signature of board members and shareholders? Can we open a case to against the CEO?
Q8. How does the CA government look over the business activity? Does CA government got any stock issue record or redeem record or price change record we can get?
Thanks!!
Chao-Cheng
I need legal advice for a case of small business. Please reply to me if anybody have some answers of the questions below:
Case:
Company C established in April 2003. They have issued stocks to shareholders and board members. Now some board member and shareholder would like to check the detail financial report of Company C. They believe the CEO has illegally redeem his stock.
The CEO own Virtual Capital J which is the largest shareholder of the Company C.
Q1. Before the investment, Company C needs to disclose Virtual Capital J occupied 51% shares of Company C as its responsibility, if not, the behavior is legal or not?
Q2. For New Shareholders joining, Stocks Redemptions/ Issuances, Loan from Someone, Investment and all the others regarding Company C¡¦s financial situation and meeting, does the Company C have the obligation to notify all board members? If it does, is it illegal for the CEO not notify the board members? What can we do?
Q3. About the right of the board members and shareholders, could they request the whole financial information, for example, to release financial statement, invoice record, check record (Pay Who and Pay Why), bank statement and record so forth.
Q4. Who decide the stock price, price change and amounts of issuance? Who is in charge of¡@it? Is the California government in charge of it or not?
Q5. When the shareholder redeem their stock, shouldn't them receive 1099 tax form about the capital gain of stock? The shareholder did not receive any tax information about those redeem stock, what does it mean?
Q6. CEO and CFO are both in charge by one person, is it legal or not? Who can point the position to the people? Does it legal if there¡¦s no any board meeting agree with it? If any, what can we do for it?
Q7. Last time, the shareholders tried to call a special meeting, but got company attorney¡¦s letter said that we can not do it because we did not have a letter of signatures of shareholder. What if the CEO provides wrong information to the lawyer about the signature of board members and shareholders? Can we open a case to against the CEO?
Q8. How does the CA government look over the business activity? Does CA government got any stock issue record or redeem record or price change record we can get?
Thanks!!
Chao-Cheng