Texas Secretary of State Hope Andrade is warning incorporated businesses that a Los Angeles company calling itself the "Office of The Compliance Recorder" is mailing an official-looking document that claims directors and shareholders could face personal liability and loss of limited liability status if they do not complete an Annual Minutes Disclosure Statement. The company then offers to process the corporation's minutes for $150 a year, or $200 if the corporation wants the minutes processed immediately.
"You do not have to do business with the Office of the Compliance Recorder," the secretary of state's alert says. "The forms provided in the solicitation are not required by the Texas Secretary of State. Whether you choose to do business with Office of the Compliance Recorder will in no way affect your status with the Secretary of State or the limited liability of the entity."
The Secretary of State's Office has referred the solicitation to Attorney General Greg Abbott for investigation under the state's Deceptive Trade Practices Act.
In addition, the Los Angeles Better Business Bureau gives the company an F. "We strongly question the company's reliability for reasons such as that they have failed to respond to complaints, their advertising is grossly misleading, they are not in compliance with the law's licensing or registration requirements, their complaints contain especially serious allegations, or the company's industry is known for its fraudulent business practices," the bureau says on its Web site.
Action , Aug. 17, 2009
Last Updated On
October 05, 2010
Originally Published On
March 23, 2010