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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Employment Law
Satisfied Customers: 118082
Experience:  20+ Years of Employment Law Experience
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We are an esop with 100% of the shares owned by a trust --

Customer Question

we are an esop with 100% of the shares owned by a trust -- if there are serious concerns about ceo and board member negligence/gross misconduct, where would we start to request removal of these individuals?
Submitted: 1 year ago.
Category: Employment Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
First, the ESOP documents should have a provision for removal of the CEO or any director. If there is no such provision, then an attorney is required to file an action against the CEO and director/board member on behalf of the ESOP trustee to seek their removal, since absent a provision in the governing documents a court order of removal would be required. If your documents provide a means for removal, then you have to follow the provisions in that document to get the votes necessary for their removal.