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What rights does a minority shareholder and corporate officer have in a closed C-corp

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bike2smile

Junior Member
What is the name of your state (only U.S. law)? CA

I am a VP for California-based, family owned and operated insurance firm. We are a closed C-Corp. I am also a minority shareholder.

Recently we have been in turmoil. The CEO and EVP (family members) have a difference of opinion with me (VP) on business operation. As we can't agree, demands are being made that if I don't do what they want, we (majority shareholders CEO & EVP) won't continue to pay my small salary and expenses such as Health Insurance, car, etc. The business pays these things for all corporate officers. Is it legal to single me out?

Furthermore, I am a commissioned salesperson who assigned my commissions to the corp for tax purposes. Can these be taken away from me as well? I am the writing agent which is well-documented.

Thank you in advance for your help...never go into business with family members :)
 


tranquility

Senior Member
Is it legal to single me out?
It depends on many factors and the specific thing you are talking about. For example, many group insurance contracts require all in the business to enroll or a refusal form to be filled out by the employee on insurance. Retirement and other money issues must follow the tax rules and not benefit only highly compensated individuals depending on the specific plan or money. Others too. The car, absent specific provision on another contract, can be taken.

Furthermore, I am a commissioned salesperson who assigned my commissions to the corp for tax purposes. Can these be taken away from me as well? I am the writing agent which is well-documented.
I don't know how you can assign your commissions to the corporation for tax purposes. What do you mean by that?
 

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