What are the basic steps that a board should follow in order to avoid legal problems when removing a CEO?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What are the basic steps that a board should follow in order to avoid legal problems when removing a CEO?
This is a small start up company but trading publicly. Board is in agreement on need for change and looking for proper legal path to take.
Asked on June 23, 2011 under Business Law, California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I am assuming that this small start up and publicly traded company has legal agreements up and down with every executive around. So what you need to do is to review those agreements so that you do not violate any contracts, etc., and find yourself a defendant is a lawsuit. What ever the percentage of the vote of the board of directors you need to remove him make sure that you have. Dot your "i's" and cross your "t's" and make a paper trail to protect yourself. Documentation is never a bad thing to have backing you up - a paper trail - evidencing his wrong doings or mis-calculations and their results. Good luck.
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.