Summary
Did somebody give you 1 share or 1% share in a corporation just because they needed to complete the minimum number of shareholders?
We see this a lot in family corporations and businesses. Stockholders whose names are placed in the corporation as owners, when in fact they don’t have any investment in the corporation…or they’re not even involved in the corporation at all.
Many times we find that the owners of a corporation include the names of the owner’s children. Sometimes you will even see secretaries, drivers, or even household helpers named as part owners of the company.
So our question for today comes from Marie G, and she writes:
“Attorney, my friend started a corporation many years back and he asked me if I can be a dummy stockholder for him along with his girlfriend, his mom, and tita (auntie). I agreed. I think he gave me 1%.
Since then I do not have any update on what happened to the company. Sometimes my friend makes me sign things. But when I ask him about it, he tells me that these are routine documents. I’m worried I might get sued someday. What are my rights as a dummy? ”
This summary is based on the video's description. For general education only; not legal advice for your specific situation.
