Legal Question in Business Law in California

Can i name someone an officier of my company without giving away any part of the company?

Does naming someone a corporate officer give them ownership of the company?


Asked on 12/11/12, 10:26 am

5 Answers from Attorneys

Bruce Beal Beal Business Law

Yes. No.

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Answered on 12/11/12, 10:32 am
Robert Worth Robert J. Worth , Professional Law Corporation

Officers are not necessarily share holders/owners. That's up to you and the negotiations depending on the value and experience of the prospective officer. Regards. Bob Worth

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Answered on 12/11/12, 10:43 am
Terry A. Nelson Nelson & Lawless

You can hire any employee you like. Officers are employees. It is up to you if you also make them shareholders.

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Answered on 12/11/12, 11:27 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I agree that the answers are "yes" and "no" (in California) to your two questions. Officers are, however, a bit more than "mere" employees in that they are presumed to have certain authority to act in ways that will bind the company. For example, if you make someone a vice president, a landlord could assume he was authorized to sign a lease for office space, and the company would be bound thereby. In some states (not California) corporate directors must own at least a token amount of corporate stock. I have never heard of any requirement that officers own stock, nor does naming someone a corporate officer automatically make them an owner.

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Answered on 12/11/12, 2:23 pm
Anthony Roach Law Office of Anthony A. Roach

The fact that someone is a corporate officer alone does not mean that person has an ownership in a corporation. Ownership in a corporation is manifested by owning the shares of stock that form the corporation. But I could not advise you further without reviewing your corporate by laws and articles of incorporation.

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Answered on 12/11/12, 7:12 pm


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