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Loren, Attorney
Category: Business Law
Satisfied Customers: 28555
Experience:  30 years experience representing clients .
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I am a 50 % sharholder in an s corp, vice pres. can the president

Customer Question

I am a 50 % sharholder in an s corp, vice pres. can the president fire the vice president? and if so what recourse do I have.
Submitted: 5 years ago.
Category: Business Law
Expert:  Loren replied 5 years ago.
It ultimately depends on the bypass and how they define the rights and obligations of the corporate officers. However, as a general rule, the shareholders elect the board of directors and the board appoints the officers. So, it would have to be the board which would remove an officer they appointed.
Loren and 4 other Business Law Specialists are ready to help you
Customer: replied 5 years ago.
The bussiness is a small three bay auto service we have two employees, As far as I Know there is no board of directors unless this president is assuming that role also, is this possible?
Expert:  Loren replied 5 years ago.
It is possible, but why would you, as a 50% shareholder, not know? You should be, not only electing the board, but sitting on the board, as well. You need to demand to see the minutes and bylaws of the corporation. There should be annual meetings with elections. You need to be more informed as a major shareholder.

Edited by LawGuy on 12/1/2010 at 4:32 AM EST