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Dale M is correct but I would also add that investor could become a creditor by bringing a derivative suit against the company and/or founder (and winning the suit). Then investor would then also be a creditor paid ahead of the other equity investors to the extent of the judgment won, but still have no specific claim to the liquidation proceeds of the loan. ...


My name was not provided, they had signed all the documentation and the only way it was tied to my name was with my credit card. Based on this, it seems that you did not sign the contract so you are not legally liable. They probably just tried to charge the credit card on file, which was yours.


Do I have rights to the loan as an asset of the company? You, no. It’s an asset of the company and,as such, will be liquidated by the liquidator for the benefit of the creditors of the company. Only if all creditors are paid in full will a dividend by paid to shareholders- this virtually never happens. The loan contract is still valid and the borrower ...

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