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Delta-Lawyer, Attorney
Category: Business Law
Satisfied Customers: 3546
Experience:  10 years practicing IP law and general litigation
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Is direct defiance of shareholder demand grounds dismissal

Customer Question

Is direct defiance of shareholder demand grounds for immediate dismissal of a CFO or Managing director. Especially when it involves disputed tarsier of funds to personal accounts?
Submitted: 1 year ago.
Category: Business Law
Expert:  Delta-Lawyer replied 1 year ago.

I hope this message well. I am a licensed attorney with over a decade of experience. It is pleasure to assist you today.

Please give me a little more background about the situation if you don't mind. Do you know if the CFO or managing director is contracted or a direct employee?

Expert:  Delta-Lawyer replied 1 year ago.

I will wait on your response to the question above as it will have bearing on the answer, in total. That said, generally speaking, direct defiance of a shareholder demand is a breach of fiduciary duty on the part of a CFO or a managing director and as such, is easily grounds for termination.

If the CFO or Manager is employed at will (not having a contract), you technically do not have to have any reason to terminate their employment. An employment contract can complicate matters a touch. However, even then, this would be a breach of fiduciary duty, assuming the demand meets all technical requirements in the corporate by-laws, and would be grounds to terminate or separate.

Expert:  Delta-Lawyer replied 1 year ago.

Just checking in with you to see if you have any additional questions based on what was shared earlier. I want to make sure you are as comfortable as possible moving forward with this issue. Thanks!