Expert: John Varghese Date: 6/1/2008 Subject: corporation question
Question I started a business with my ex girlfriend and started a corporation to put the business under. After seperating I decided to resign as the corporation president so I can break all ties with her. We never issued stock in the corporation. My question is: even though I resigned as president, do I still own half of the business and half of the stock?
Answer Dear Jason,
In corporations, owning the share and stock and being the President is seen as two seperate things. To put it simple, president is an officer of the shareholders and any one can be appointed president if the share holder so decide. In some jurisdictions, president does not even have share holding requirements, which means that even a person who does not hold a single share can become the president in such jurisdictions.
Simply put it, you can own business and control the same, if you are owning half of the business and half of stock as put in. However would request you to look into the Articles of the Company, as to whether there are any restrictions imposed on you, to hold stock if you resign as President.
