S Corporation sharholders

[northshore]

What is the name of your state (only U.S. law)? New Mexico

We have 4 equal shareholders in real estate of an S corp. One of the shareholders wants to continue receiving dividends but has assigned someone else to represent her for voting, receiving quarterly reports, etc... Is this legal?

[ElvinMelvin]

Originally Posted by northshore

What is the name of your state (only U.S. law)? New Mexico

We have 4 equal shareholders in real estate of an S corp. One of the shareholders wants to continue receiving dividends but has assigned someone else to represent her for voting, receiving quarterly reports, etc... Is this legal?

You need to check the corporation laws for the state in which you are incorporated.

For example, it would be fine in Delaware:

§ 212. Voting rights of stockholders; proxies; limitations.

(b) Each stockholder entitled to vote at a meeting of stockholders or to express consent or dissent to corporate action in writing without a meeting may authorize another person or persons to act for such stockholder by proxy, but no such proxy shall be voted or acted upon after 3 years from its date, unless the proxy provides for a longer period.