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Article Date:
September 2024


Word Count:
809

 

 

The Cost of Trust: A Cautionary Tale for Minority Shareholders


This is a sad story with strong lessons for businesses with multiple owners.

 

James Maggard owned 40 percent of an S corporation. LL, an old family friend, owned 40 percent, and WJ owned 20 percent.

 

LL and WJ conspired to loot the S corporation. It took years for Maggard to discover the nefarious activity. Once he discovered the problem, he sued and eventually sold his stake in the company to LL.

 

The Looting

 

When LL and WJ became shareholders, the looting began. LL took care ... Log in to view full article.

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