Problems between President & Vice President
Asked by: Lynn - 9 October, 2011
If you open an S Corp with a partner, one being president and the other being vice president, what happens if you don't do business well together and will the president have final say?
If you open an S Corp with a partner, one being president and the other being vice president, what happens if you don't do business well together and will the president have final say?
Answered by: Roman Fichman, Esq. - 29 October, 2011
Lynn,
I'll assume the corporation in question does not have a board. Generally speaking, because s-corps do not have classes of shares, the power of a shareholder is simply measured by the percentage of shares they own, unless the by-laws define what it means to be a president or vice president. If the bylaws do not define the roles then the titles of president and vice president are just honorary in nature.
If a company is managed by a board then the board could intervene. Though I rarely come across s-corps with boards.
Lynn,
I'll assume the corporation in question does not have a board. Generally speaking, because s-corps do not have classes of shares, the power of a shareholder is simply measured by the percentage of shares they own, unless the by-laws define what it means to be a president or vice president. If the bylaws do not define the roles then the titles of president and vice president are just honorary in nature.
If a company is managed by a board then the board could intervene. Though I rarely come across s-corps with boards.
