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Voted Out from the Board

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leojin

Junior Member
What is the name of your state (only U.S. law)?

NY State:

Hi;

I am a co-founder of a start up company (7 months old) that is fiscally mismanaged by the president. There are 5 principals, myself being the original Incorporator had signed my name with the Department of consumer affairs. During the past 3 months there have been minor disagreements between us the 5 principals over the entire operations, policies, procedures and spending. The company is losing over 20K/month and no expected strong revenue aside from a contingency (performance base) contract that is currently hanging.
Because of my insistence to scale down the operation and significantly cut back on staff and overhead expense, they think that I am not on the same page with everyone (that I don't have trust in the company's direction), they decided to vote me out in one of the board meeting (the first time I was absent).

The company has been selling shares to investors who are not fully aware of the company's financial status (another reason I was very much against with), in order to raise capital.

My question is:

Since I was technically voted out, am I still legally responsible for any liabilities and lawsuits against the company? I am not interested in claiming any shares nor have any association with the company or principals anymore, what are the steps necessary to relieved me from any legal obligations that might affect my status for opening another business of my own in the same state?

Thanks,

Leojin
 


tranquility

Senior Member
Only to the extent of your personal guarantees and to the extent of anything which happened during the time you were there regarding trust fund taxes and if a credit/tort plaintiff successfully breaches the corporate veil.
 

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