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MATTHEWS v. TELE-SYSTEMS, INC.

No. A99A1041.

525 S.E.2d 413 (1999)

240 Ga. App. 871

MATTHEWS v. TELE-SYSTEMS, INC. et al.

Court of Appeals of Georgia.

Certiorari Denied March 24, 2000.

Attorney(s) appearing for the Case

Gaslowitz & Associates, Adam R. Gaslowitz, Walter Hamberg III, Atlanta, for appellant.

Robins, Kaplan, Miller & Ciresi, Thomas J. Gallo, Sandra G. Kirk, Fain, Major, Wiley & Brennan, Thomas E. Brennan, Atlanta, for appellees.

MILLER, Judge.

As a director and approximate one-third shareholder of a close corporation, Tele-Systems, Inc., Charles Matthews agreed to the $12,000-per-month salaries of two other director/shareholders even though he knew the revenue stream of the corporation would not support such unless a hoped-for contract soon began producing substantial revenue. The contract eventually produced the revenue to support the salaries. Based on false statements by these two directors...

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