How to resign properly as CEO of a small business?

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How to resign properly as CEO of a small business?

Currently, I would like to resign from the CEO post of a small business. Yet,
there are several business accounts under my name.

My question is whether I should close them before resign? Also, I’d happy to
transfer them to others if they would take over. How should I address them in the
resignation letter to make it proper, also liable-free for me in the future?

Thanks.

Asked on May 10, 2018 under Business Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

1) You are right: you need to move the money in the work accounts from your personal account to a company account, then close the personal (under your own name) work accounts. If the company is already an LLC or corporation, simply set up LLC or corporate accounts (as CEO, you have the authority to do this). If it's not an LLC or corporation, then unless someone else will take over having the accounts for you--and they'd have to do this voluntarily--your best bet may be to set up an LLC or corporation for it, then set-up the accounts and move the money.
2) There is no way to ensure no future liability for past acts: if you did something during your tenure as CEO for which you could be sued, you could be sued later (e.g. if the problem or issue, etc. has not been discovered yet) even if you resign. You are liable for what you have done.
3) Going forward, you will want to completely disentangle yourself from the company: move the accounts, as discussed above; return all company property; and make clear to everyone you deal with, both internally and externally (e.g. customers and vendors) that you are no longer CEO effective as of a certain date. You want to notify everyone in writing, ideally by some way that you can prove delivery (e.g. email), so that no one has grounds to claim that they though you were still on board and were still responsible for something.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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