Legal Question in Business Law in California

doing business as non profit organization one of the other personhas a felony charge on her name wilol be working with teens. can the felons name appear on documents.


Asked on 8/14/11, 5:23 pm

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Every business organization, non-profit or for profit, has a duty to the public, customers and other employees to use reasonable care in hiring or accepting volunteer services, to check the background of its staff for suitability to the task. For example, a truck like should not hire a driver with a terrible DMV record. While former felons deserve a chance to re-enter the work force, the nature of the felony should be at least some factor in the hiring decision. The nature of the felony and the terms of the probation or parole, if any, should be considered. Some ex-felons could not be hunting guides, for example, because they cannot possess firearms. A registered sex offender would be a poor choice for a camp counselor, and so on.

I do not know of any law limiting the qualification of an ex-felon to serve as an officer or director of a business of any kind. Officers and directors are subject to removal from office if they commit felonies while in office, however.

As for felons' names appearing on documents, I do not know of any restriction imposed by law. If you meant by the question, do (ex) felons have the right to sign documents, the answer is, they are just like any other officer; if the organization gives them the authority, they may sign papers and make commitments that bind the organization.

I should add that a 'felony charge' is different than a 'felony conviction.' While the phrase 'presumed innocent until proven guilty' may not be literally true in all situations, it is true that lots of people are charged but never convicted.

If this doesn't answer your question, please re-ask it with more specifics.

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Answered on 8/14/11, 6:04 pm

"Doing business as a non profit" pretty much makes it clear you are NOT doing business as a properly registered and approved non-profit. You need to get a qualified experienced non-profit attorney involved or wait for the IRS knock on the door. Oh, and by the way, the IRS is NOT nice.

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Answered on 8/14/11, 10:27 pm


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