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Pope · Jul 13, 2008, 06:52 PM

I am one of four owners of a corporation. We all have equal shares of stock. I loaned almost $50,000 of my money to the company in February of 2007. The loan was verbal, with no time table as to when it was to be repaid, nor was interest discussed on the money. I now want to be recall the loan, but my partners refuse to repay the money. I have done my research to know that in most states the money is payable on demand. Does anyone know the Georgia Law? And what statute will back it up?

George_1950 · Jul 13, 2008, 09:22 PM

Welcome to AMHD. Is your accountant familiar with this arrangement? Is the transaction reflected on your taxes or the corporation's taxes? Are you certain the business is incorporated? Are you an officer?

Pope · Jul 14, 2008, 06:05 AM

Our Accountant is a personal friend of the other partners, she is aware. Yes the transaction is reflected on our taxes and in the soft ware we use. Yes we are incorporated. I was an officer, until I asked for my money, then they had a special meeting and removed me as a officer. I was the Vice Pres.

George_1950 · Jul 14, 2008, 06:18 AM

Just my personal view, but I believe you need to draft a memo to the officers and accountant; call it a "Memorandum of Understanding" concerning the loan of $50k to xyz Corporation. Recite the facts as well as you recall them and request their input as to the facts, only. Once the transaction is memorialized, you can begin to layout your position as to interest rate and terms of repayment. You are in a position of needing a lawyer, but you may get some movement. I think the big question is why did you personally make this loan? And, can you reasonably expect the other officers/shareholders to repay you? Does the corporation have any assets?

excon · Jul 14, 2008, 07:52 AM

Hello P:

You have a contract/note with the corp. It has NO payback date. You can't unilaterally change the agreement to create a payback date where one didn't exist.

excon