Is a shareholder's agreement not to sue binding on his or her heirs?

If a shareholder provides a board of directors with a letter saying that he or she is estopped from bringing suit against the board of directors of a corporation, will that serve as a defense if her heirs later wish to bring suit?

Los Angeles, CA -

Attorney Answers (3)

Michael Raymond Daymude

Michael Raymond Daymude

Litigation Lawyer - Sherman Oaks, CA
Answered

I'll jump in here and add a penny, after reading the comment to Mr. Doland’s answer. The heirs (administrator of the decedent's estate) can have no greater rights than the decedent. I am not certain, however, that the letter you reference limits the decedent's rights as you suggest. You should consult counsel who can review the facts and the purported shareholder agreement or estoppel certificate to determine its value and applicability.

I am licensed in California only and my answers on Avvo assume California law. Answers provided by me are for... more
Michael Charles Doland

Michael Charles Doland

Contracts / Agreements Lawyer - Los Angeles, CA
Answered

One would want to review the letter and to know what potential causes of action the corporation is worried about. In it's current form the question is just too general. Most causes of action belong to the estate of the individual who is deceased, subject to applicable statutes of limitations and other factors.

The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more
Albert Lee Crosner

Albert Lee Crosner

Contracts / Agreements Lawyer - Manhattan Beach, CA
Answered

Attorneys Daymude and Doland have provided you with some very good advice.

Mr. Crosner is licensed to practice law in California and has been practicing law in California since 1978. The... more

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