Corporate Law members of flp bleeding money from the corp.

[canelope]

I am involved in an flp with my father, brother and sister. The flp is formed with circle x llc and family s corp. circle x has the realestate that family generates revenues from. family farms pays the mortage of circle x with very little left over until last year that is.. Family had an 80,000 dollar surpluss. for the first time ever family paid out wages. of 35,000 to my father and 32,000 to my sister My brother got married two years ago and left the farm and I got married last year and left the farm. We have grown up on the farm having equal contributions and we are all managers. Three years ago we each received a disribution of 10,000 dollars. My brother and I did not know that my father and sister paid themselves a wage from family farm and we would not have agreed to it since family farms pays for all living expenses of those living on the farm. Is that legal?

 

[Michael Wechsler]

We have no idea who runs the corporation and what rights and duties may be involved. It is not unheard of that officers decide to pay themsleves a salary without shareholder approval, especially where not unreasonable. We simply don't have enough information to answer this question. Good luck.

 

[NashG]

Thank's for the information.