How canI get my company to pay my credit card balance due to company expenses?

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How canI get my company to pay my credit card balance due to company expenses?

I am a minority shareholder in a closely held C corp. For the last 5+ years the corporation has been using my personal credit cards (billed to corporate address) to buy inventory, goods and services. They issue the checks directly to the credit card companies. There is no dispute that these are company expenses. Outstanding balance is currently about $100K. Is there any way I can force the company to pay these cards off?

Asked on November 6, 2011 under Bankruptcy Law, Alaska

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

You need to have a meeting with the individuals that run the day to day operations of the corporation that you are a minority member of to have the expenses that it is charging on your credit card paid off as soon as possible and follow up with a confirming letter.

I suggest that the coproration get its own credit card for such expenses rather than using your own for business purposes in that such is not a good idea. I would also notify your credit card company that the coproration has no right to make any further charges with it. I see a problem that the corporation can have financial problems and you end up getting obligated personally on your credit card bill.

I suggest that you consult with a business attorney about your situation. Good luck.


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