Request for Question Clarification by
pafalafa-ga
on
21 Mar 2005 07:39 PST
shaken-ga,
As noted at the bottom of this page, Google Answers is not a
substitute for professional legal/financial advice, so please take any
information received here appropriately.
My understanding of California business filing requirements is that a
domestic stock corporation only needs to file a statement once a year
that includes information on directors of the corporation (and as a
50% shareholder, I presume you are one of the directors of the
corporation).
However, a corporation MAY file an amended annual report indicating a
change in its directors, and I would certainly encourage you to have
the corporation file such an amended report to reflect your change in
status.
As for liabilities, I would not think that you would be totally exempt
from ALL liabilities for corporate actions that were taken while you
were a principal of the corporation (e.g. if the corporation broke
some sort of law, you would still bear some liability).
However, once your shares were sold, any financial liabilities pretty
much go away **if your company was incorporated**, and you would no
longer be associated with any new liabilities for future corporate
activities. For partnerships or other forms of business organization,
if you, e.g, personally signed for a loan, then you may still be
liable for it.
Again, I'm not a legal/financial professional, so take this all with a
few grains of salt.
However, if you would like information on what forms need to be filed
to amend corporate records, I would be glad to provide the relevant
information as an answer to your question.
Let me know,
pafalafa-ga
