So he's not telling you what he needs a lawyer for, but he wants BG to pay for it?  I hate to sound like a bitch, but he needs to produce evidence of the need for a lawyer first - something quite specific and in writing - and user funds can't be used to pay for it even if there is a legitimate need.  Even if BG has some of its own reserves which could be used for this purpose, they should not be channelled towards legal fees for Nefario until you have a written legal opinion stating that none of the shareholders are in legal jeopardy - otherwise you're all screwed if Nefario gets legal advice on BG's dime and you guys find yourselves facing legal problems later.

Honestly, the shareholders - and especially you - themselves need legal advice at this point.  At the very least, you want the other shareholders to indemnify you against any liability which arises as a result of you complying with their demand for you to hand funds over to Nefario.  And you want that indemnity drafted by your lawyer, not theirs.