Legal Question in Business Law in Maryland

business that is incorporated

can a owner of a incorporated business pay his wife a large salary

for full time hourly wage when she rarely comes into the office or works sometime not for5-6 months


Asked on 4/07/09, 2:12 pm

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: business that is incorporated

The Board of Directors has authority in this area, and I assume he controls that or essentially is the majority stockholder. However, if minority stockholders are supposed to receive dividends and the wife's salary is preventing that, they might have a legal action to challenge this.

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Answered on 4/07/09, 3:19 pm


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