Stock Markets Exposed

Is not responding to a stockholder by a corporation a crime? What about Directors fiduciary responsibilities?

My question of 3 months ago got serious answers and off-the-point answers. Thanks in all cases. The link to corporate status in Nevada may be current but no response to this "angel investor" is forthcoming. I am told a corporate officer complained about this posting. Criminal? How do I find a corporation I have bought stock in that isn't returning calls? A certain business developing text translation software incorporated in California and I bought $15,000 in shares. Early "angel" investor. Another person I am connected with invested $50,000. We became suspicious of the credibility of the company but it continued to promise a major development which continually did not happen. Later it moved from CA to Reno, Nv and now is in either Va of Fl. Web site email link isn't getting me response and phone calls not answered. President is known to some. Name is Sam Habib. Any suggestions to see if there is an ongoing company and corporation and that it is not cheating others in a scam?

Public Comments

1. Your question is a little vague. As a general principle, officers and directors owe fiduciary duties to the corporation - not directly to shareholders (except in the case of an insolvent corporation, where fiduciary duties can switch directly to creditors or shareholders.) Not responding to your letters or calls is not really anything actionable, though it is most certainly poor practice. If you have nothing but shares - that is, you have no separate shareholder agreements, voting agreements, or buy-sell agreements in effect that provide you with special rights - then your formal remedies in most states are somewhat limited unless you are a significant (>10% shareholder.) For example, in certain circumstances, you may commence a shareholder derivitate action after satisfying certain statutory requirements. A less drastic measure, if permitted by the company's bylaws, would be to get certain items on the ballot at annual shareholder's meetings such as a new proposed director slate, etc. Now, notwithstanding any of this, if there is suspected criminal activity at foot - then nothing precludes you from notifying the proper investigative authorities (attorney general, police department, etc.) Criminal prosecution can take place if there is a crime underway, regardless of what your technical corporate governance rights may or may not be. Good luck.