
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, August 29, 1994                   TAG: 9408300005
SECTION: BUSINESS                    PAGE: 6   EDITION: METRO  
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

WIDOW HAS RIGHT TO KNOW STOCK STATUS

Q: My husband died last year. He had stock in a small company of which he was the president. He also was the largest stockholder. There were only two other stockholders.

I did not get any kind of report from the company. I wrote to them, but I have not received a report. Can I force them to give me a stockholder report? If they do not, is there anybody I can notify to force them to make some kind of stockholder report to me?

A: R. Neal Keesee Jr., a corporate law specialist with the Roanoke firm of Woods, Rogers and Hazlegrove, said the executor of your husband's estate - or, if he had no will, the administrator - has a right to demand an accounting and records of the corporation. You do not say whether that person is you but, if so, you should make your demand as the person handling your husband's estate. If the executor is another person, ask him or her to make the demand in writing.

Under state law, Keesee said, the person controlling your husband's stock can petition a court to order production of the records if your written demand is ignored.

You can obtain copies of some records filed by the corporation with the Virginia Corporation Commission, such as the list of current officers and directors, but your best remedy is through the courts.

You do not say who controls the stock now. Your husband's estate or his heirs can compel the corporation to call a meeting, Keesee said. If you have the largest block of stock under your control, he pointed out, you have the power to elect new directors. If you own your husband's shares, you can elect yourself to the board.

Your own will is valid

Q: We have done our own will on a preprinted form. Is that valid in Virginia?

A: You have the right to prepare your own will using a preprinted form, a computer, a typewriter or your own handwriting. The document must comply with Virginia law, and your signatures must be properly witnessed.

On the other hand, why do you want to take a chance on the validity of your will? If you have made a mistake or, more likely, overlooked some eventuality, it will be too late to make a correction after your death. If you need only simple wills - and you and your husband will need separate coordinated wills - you should be able to have them drawn up professionally for $150-$200.

Inheritance options

Q: I am soon going to receive an inheritance of $15,000. What is the best way to handle this money so that it will be making money, especially for future use? Also, should I consider using some of the money to start an Individual Retirement Account? And finally, are savings bonds the best way to save money for my infant's college fund?

A: If you are young, you should aim to make the money grow as much as possible over the long term. The history of investing in this country shows that the best way to accomplish this is through the stock market. As a young person, you have time to ride out any downturn in the market.

The way to achieve the required diversity and professional management with the limited amount of $15,000 is through a mutual fund. A mutual fund has another advantage: You can add to it in increments over the years so that your investment builds even faster. You should look for a no-load mutual fund that aims for growth, but you should avoid a fund that invests in junk. Read investment magazines, choose potential funds and read the prospectus carefully.

You can use the tax shelter of an IRA to good advantage, but you are limited to a contribution of $2,000 a year. You can invest in an IRA only if you have earned income of at least the amount you contribute.

If your child is an infant, you have a long enough horizon so that you should go for maximum growth through a stock mutual fund. The same reasoning applies as to your own investments.

As your child approaches college age, you should become more conservative to preserve the principal. When such a time arrives, you should consider investing in U.S. Savings Bonds, which can be cashed in tax-free if they are used for college tuition. Because your child is an infant, you cannot be sure now that you will meet income limitations for this program when the time comes for him or her to enter college.

by CNB