Doylestown, PA asked in Business Law for Pennsylvania

Q: Is there a statue of limitation on compensation for shares?

My father gave me shares of his s-corp, roughly 30 years ago, and equates to 1/3 of the issued shares. Now he is incapacitated and I see how the corp distributes profit and losses to the shareholders in prior tax returns. I never received anything for my shares and he had kept them with his business documents. They are registered. He forgot about them, and I didn't remember until I saw the shares as well. I have asked for a K1 so I can file my taxes and get compensation, but the business attorney said all profits/losses go directly to the owners, which doesn't seem correct by past tax filings (which were wrong in terms of percent share ownership). Do I have a leg to stand on here and if so, what should be my next steps?

Related Topics:
1 Lawyer Answer
Nellie T Schulz
Nellie T Schulz
  • Philadlephia, PA
  • Licensed in Pennsylvania

A: You describe a complicated situation that has many potential legal and tax issues - it’s even possible the company is no longer in existence. I think you need to consult personally with a business lawyer to review what documents you have, what documents are filed with the PA Department of State and to go through all the facts.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.