Legal Question in Business Law in Georgia

Employee Layoff

Can an employee of an ''S'' Selection GA Corporation be laid off if he/she is [also] the owner of the company? The scenario in question is a small custom mfg business that has cut it's costs (everything from office supplies to employees) all it possibly can and is now considering laying off its last employee, who happens to be the founder/owner/President of the company. The individual is paid as an employee and does receive a w-2.


Asked on 3/12/09, 10:51 am

1 Answer from Attorneys
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Employee Layoff

Yes, assuming there is no employment agreement in place that precludes such a termination. Status as an owner does not affect the company's ability to terminate employment. However, unless an agreement states otherwise, such termination will not affect that person's ownership rights - voting, dividends, etc.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 3/12/09, 11:01 am


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