Archive for January, 2009
In my last posting, I discussed how the current recession could be used by an unscrupulous majority shareholder to hide his embezzlement. Unfortunately for several clients I have met with in the past couple of months, these words proved prescient.
One shareholder in particular thought she saw herself in that posting and started questioning what was happening with the company. Of course, she was told that all dividends had stopped because the company was losing money as a result of “the economy.” However, something in the back of her mind told her that things were just not right. Although she figured that the company would probably lose at least some money as a result of the economic downturn, she did not think her dividend checks should stop altogether. After all, she left her employment with the company years ago on the premise that she would retain her shares, along with her right to receive proportionate distributions.