Corporate liability

[Forbesvol]

I am thinking of becoming a 40% shareholder in a class c corporation that would have two other stockholders(1 at 40% and 1 at 10%). This is a small corporation(1.2M sales) in Tennessee that had a fire in March 2000. The corporation's
insurance company refused to settle and has sued them in Federal Court to recoup claims already paid out to the corporations customers, etc.. The corporation has filed a countersuit and the whole thing will be tied up in court for awhile. Should the corporation lose the Judgement, could my personal assests be claimed by the insurance company, since I was not a shareholder at the time of the fire. Since the corporation is a "C" corp and I have never signed any personal guarantees, it is my understanding that I would be safe from personal liability.

Thanks for your Help!

[Edited by Forbesvol on 02-20-2001 at 12:09 PM]

 

[ALawyer]

This is one that you ABSOLUTELY need a local lawyer to advise you on. There are all sorts of problems that could arise, and while I am not saying they will, any claim of mismanagement, or failing to protect assets of the company for the benefit of the creditors, lodged against you can cause problems for you and defending such claims can cost you money in any event.