Minority shareholder declaring bankruptcy
May 7th, 2008 by Questions
If I own 25% of an incorporated business when I declare bankruptcy and the trustee cannot find a buyer for those shares (because nobody in his right mind will pay to be a minority shareholder in a close family run business!) can he demand that the corporation or other shareholders pay him 25% of net asset value?
All the corporation’s transactions are above board. We have no problems with anybody examining the books. All wages and salaries are reasonable. My bankruptcy was due to my personal problems.
My relatives who hold the rest of the shares are pressing me not to declare bankruptcy but that seems the only viable option. I want to quell their fears before I take any action.
Again my only source of income is the business. Will the trustee raise any issues about the salary paid to me? (It is less than 25% of the net profits , I have been getting the same salary for four years)
Posted from: Ontario
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