Ask a Business Lawyer. Get Business Law Questions Answered ASAP.
What state is the convicted felon in? What state is the corporation in? What kind of corporation is it? Did the person disclose his or her felony conviction? What position is the corporate officer in?
Please pardon my delay in responding to your question; my internet access was down.
There's no law prohibiting a convicted felon from serving as a corporate officer in California. However, if the convicted felon failed to disclose his past when he was asked when he was first hired; or concealed his past by saying that he was someplace else during the time he was actually incarcerated, this would be fraud and a grounds for removing the corporate officer.
If the conviction was withheld from the shareholders, then the shareholders may have a legal cause of action against the convicted felon and whomever hired the felon.