Cross Hair
Member
What is the name of your state (only U.S. law)? Ohio
I am a minority share holder in a closely held company. Their were four shareholders at on point, myself, the original owner and his wife and another party who was an employee at one time until we fired him. The ex employee sued us for wrongful termination and lost, do to his breach of his employment contract (which the court ruled in our favor) we redeamed his shares for a dollar each (he never cased or returned the check though). Now he is suing us for damages over the loss of his stock, as well as his suing his original legal firm for several issues.
I am not named in the suit but the business and the husband and wife share holders are. The companies legal firm has asked me to sign an agreement so they can represent both the company and the two named shareholders in the suit. I have no problem with that as I have been in total agreement with how we terminated his employment and redeamed his stock. There is no conflict between myself and the other share holders. The company has been paying all the legal expenses thus far but the majority share holders have also waived most of their salary for the past year to "pay back" the cost.
My only concern with signing this agreement is my name has been left off for representation because currently I am not named in the suit. I asked my name be added "just in case" and was told this agreement is specific for this case and since I'm not named there is no reason to add my name. Parts of the agreement name the case but other parts are vague.
All I am asking is that if I am drug into this suit or any suit in the future (business related) my representation is covered. If I end up being a defendent just like the other share holders I see no conflict and so should be represented by the company law firm.
Agree or not?
I am a minority share holder in a closely held company. Their were four shareholders at on point, myself, the original owner and his wife and another party who was an employee at one time until we fired him. The ex employee sued us for wrongful termination and lost, do to his breach of his employment contract (which the court ruled in our favor) we redeamed his shares for a dollar each (he never cased or returned the check though). Now he is suing us for damages over the loss of his stock, as well as his suing his original legal firm for several issues.
I am not named in the suit but the business and the husband and wife share holders are. The companies legal firm has asked me to sign an agreement so they can represent both the company and the two named shareholders in the suit. I have no problem with that as I have been in total agreement with how we terminated his employment and redeamed his stock. There is no conflict between myself and the other share holders. The company has been paying all the legal expenses thus far but the majority share holders have also waived most of their salary for the past year to "pay back" the cost.
My only concern with signing this agreement is my name has been left off for representation because currently I am not named in the suit. I asked my name be added "just in case" and was told this agreement is specific for this case and since I'm not named there is no reason to add my name. Parts of the agreement name the case but other parts are vague.
All I am asking is that if I am drug into this suit or any suit in the future (business related) my representation is covered. If I end up being a defendent just like the other share holders I see no conflict and so should be represented by the company law firm.
Agree or not?
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