Daniel Victor wrote:
S-Corporation
2 owners (each with 50% ownership)
Owner A = President, as registered with the State Corporation
Commission
Owner B = Secretary, as registered with the State corporation
Commission
Brand New Organization with NO credit history and no financial
records.
Can Owner B enter into a financial (loan), binding agreement with an
individual, private investor (who happens to be a relative) on behalf
of the company without any notification or approval from Owner A?
Would the terms of the agreement change any potential answer?
Thank you for your help in advance.
That would all depend on the partnership agreement.
As my non-attorney opinion, I would think that would be acceptable as both
have equal interest.
If it were say, 60-40, then yeah, approval would be necessary.
For legal advice, hire an attorney.
