custommade123
Junior Member
What is the name of your state (only U.S. law)? Indiana
3 person S-corp in which A owns 50% and B & C each own 25% of the shares.
A, B, & C had discussed expanding corporation's business to nearby state.
A has decided to open her own business in the neighboring state without involving B&C. It will be the exact same business in the neighboring state.
Due to the nature of the business the two businesses will not compete due to regulations that each one can only operate within their respective states.
The corporation could open the 2nd business in the neighboring state.
Could this be a breach of fiduciary duty (Loyalty or Conflict of interest) for A to start the business in the neighboring state without a vote by all shareholders?
Let me know if you need any more information.
3 person S-corp in which A owns 50% and B & C each own 25% of the shares.
A, B, & C had discussed expanding corporation's business to nearby state.
A has decided to open her own business in the neighboring state without involving B&C. It will be the exact same business in the neighboring state.
Due to the nature of the business the two businesses will not compete due to regulations that each one can only operate within their respective states.
The corporation could open the 2nd business in the neighboring state.
Could this be a breach of fiduciary duty (Loyalty or Conflict of interest) for A to start the business in the neighboring state without a vote by all shareholders?
Let me know if you need any more information.