Philip W. Mason
Philip W. Mason, Divorce / Separation Lawyer - Haverhill, MA
Posted about 2 years ago.

Good solid advice

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Asker
Posted about 2 years ago.

Thabks for the reply. The owners of the company are few (4), one of which is a pension recipient. The pension is not written into the corporate bylaws. The pensions were used as a method to transfer ownership from previous owners to current. The documents do not have any mention about what to do if the business closes but does say they are unsecured. The assets were never held in a seperate trust.

Travis J. Jacobs
Travis J. Jacobs, Business Attorney - Boston, MA
Posted about 2 years ago.

Ok. What concerns me is the use of the pension as a method to transfer ownership. Entity could owe a debt to pension recipient depending on docs / structure of arrangement. Also, where did funds go? Just because it was unsecured doesn't mean entity is off the hook. Was money used by entity? By other owners? Is pension recipient planning to sue or not concerned about funds?

Travis J. Jacobs
Travis J. Jacobs, Business Attorney - Boston, MA
Posted about 2 years ago.

Ok. What concerns me is the use of the pension as a method to transfer ownership. Entity could owe a debt to pension recipient depending on docs / structure of arrangement. Also, where did funds go? Just because it was unsecured doesn't mean entity is off the hook. Was money used by entity? By other owners? Is pension recipient planning to sue or not concerned about funds?

Travis J. Jacobs
Travis J. Jacobs, Business Attorney - Boston, MA
Posted about 2 years ago.

Ok. What concerns me is the use of the pension as a method to transfer ownership. Entity could owe a debt to pension recipient depending on docs / structure of arrangement. Also, where did funds go? Just because it was unsecured doesn't mean entity is off the hook. Was money used by entity? By other owners? Is pension recipient planning to sue or not concerned about funds?

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Asker
Posted about 2 years ago.

The pensions are considered a future obligation as a fixed salary for a certain number of years. No funds were set aside. No funds were used by entity. Suit is unlikely but you never know.

Travis J. Jacobs
Travis J. Jacobs, Business Attorney - Boston, MA
Posted about 2 years ago.

My advice is to anticipate that a lawsuit will be filed and act accordingly, do everything possible and necessary to CYA. I've seen it happen SO many times where people/businesses think hiring a lawyer is too expensive/unecessary, but the cost of doing so and getting things done right to avoid a lawsuit or protect you/the business from suit is so much less than the alternative. Either way, I hope all works out ok for your business.