close corporation - derivative suit

[Fantik2000]

One of the shareholders and a Director in a closely held corporation refuses to participate in business affairs, does not pay rent or make necessary contributions to further the business. What should we do to sue him for damages, losses and/or reimbursement? Is it necessary to have an attorney? How does the derivative action work?

 

[lawrat]

I am a law school graduate. What I offer is mere information, not to be construed as forming an attorney client relationship.

It is always a good idea to have an attorney, a corporate attorney experienced with closely-held corporations and such suits, to rep you. You will essentially be showing the director did not follow through with the duties of the position, same with the shareholder. You are exercising your right as an owner of the corporation to protect the assets, etc.

Contact your state bar and ask for a lawyer referral.

Hope this helps.