I made a modest purchase for a property a number of years ago in Panama, and was taken in by the hype of a 'corporation' which I have had since to maintain it.
Well that corporation was recently subject to a scam, which is now going to cost a lot of money and time to fix.
Essentially, a bunch of criminals somehow changed the board of directors, resident agent and general power of attorney to another individual, who then took out a loan against the corporation.
When I found out, my lawyers told me it is not common, but can happen. Of course I wanted to know how the hell that could happen without them knowing, which they replied it was not their fault and that any shareholder can change this without the knowledge of the board of directors. (This bit seems very fishy to me as I knew someone who changed a lawyer firm once and he had to provide a hell of a lot of paperwork, passports of the directors etc to have this completed).
So if it is that easy, and I am not saying anyone could do it, but an organized gang certainly, then it makes the whole notion of security under a corporation an utter farce.
Now I face a long, probably expensive, legal battle to have this resolved (criminal and civil).
My friendly lawyers advised me that to make a corporation really secure, a small loan needs to be taken out against it. I have said to them, 'thanks very much for that information - did you ever consider to advise me of that over the last 5 years!!!! They didn't have an answer for that.
Anyway, I do not fully understand how this happened, however for anyone who has a corporation etc, I would speak to your lawyers ASAP.
If anyone else has a similar issue, pls feel free to provide your story.
Well that corporation was recently subject to a scam, which is now going to cost a lot of money and time to fix.
Essentially, a bunch of criminals somehow changed the board of directors, resident agent and general power of attorney to another individual, who then took out a loan against the corporation.
When I found out, my lawyers told me it is not common, but can happen. Of course I wanted to know how the hell that could happen without them knowing, which they replied it was not their fault and that any shareholder can change this without the knowledge of the board of directors. (This bit seems very fishy to me as I knew someone who changed a lawyer firm once and he had to provide a hell of a lot of paperwork, passports of the directors etc to have this completed).
So if it is that easy, and I am not saying anyone could do it, but an organized gang certainly, then it makes the whole notion of security under a corporation an utter farce.
Now I face a long, probably expensive, legal battle to have this resolved (criminal and civil).
My friendly lawyers advised me that to make a corporation really secure, a small loan needs to be taken out against it. I have said to them, 'thanks very much for that information - did you ever consider to advise me of that over the last 5 years!!!! They didn't have an answer for that.
Anyway, I do not fully understand how this happened, however for anyone who has a corporation etc, I would speak to your lawyers ASAP.
If anyone else has a similar issue, pls feel free to provide your story.
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