In Case You Missed It: Fred DuVal May Have Violated AZ Corporation Law

In Case You Missed It: Fred DuVal May Have Violated AZ Corporation Law

AZ Dem May Have Violated Corporation Law

By Michael Warren
The Weekly Standard
http://www.weeklystandard.com/blogs/az-dem-may-have-violated-corporation-law_816319.html
October 15, 2014

Democrat Fred DuVal of Arizona has made his business experience and knowledge a centerpiece of his campaign for governor. But it appears that either DuVal or a company he co-owns—or both—is in violation of Arizona corporate law.

Arizona requires those with 20 percent or greater ownership in limited liability corporations to be registered with the Arizona Corporate Commission. On his financial disclosure forms he filed in preparation for his gubernatorial run, DuVal disclosed he has 33 percent ownership in a company called Kirbent LLC, an investment between $25,000 and $100,000. DuVal also lists Kirbent as owing him an amount in that same value range.

Incorporated in 2004, Tempe-based Kirbent is registered with the Arizona Corporate Commission with its co-owners listed as John Benton, Janice Benton, and the Benton family trust—but not Fred DuVal. Kirbent’s articles of organization don’t appear to have been amended since 2004, even though the Arizona law allows for amendments to those articles in order to list additional co-owners. It’s not clear what kind of business Kirbent is in, and attempts by THE WEEKLY STANDARD to reach the company by phone have been unsuccessful.

A business litigation lawyer explains in Scottsdale tells TWS the Arizona statute isn’t clear about who is responsible—the co-owner or the company—for registering with the commission. It’s also not clear what the consequences are for breaking this law.