Legal Question in Business Law in Utah

Logo and Assets for my S Corp

Utah

I am a shareholder for an S corporation and own 51%, My other two partners have 24.5 percent of shares, one partner with 24.5 percent created the logo for our store. We are having problems with the partner that created the logo and about ready to get rid of him. My question is that the shareholder with 24.5% said he created the logo and it is his logo and he can take that from the S Corporation because he made it. He also said that it is copyrighted from him. So therefore, he said he would take our $900 sign because it has his logo, however I paid the $900. He also says he will take his other assets.

Can he legally take this logo from us and sign and other assets? Or because he developed the logo for the Corporation or is it legally the companies (SCorp)?

thanks for quick response.


Asked on 8/16/04, 6:51 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Logo and Assets for my S Corp

Generally a logo belongs to the corporation. If the shareholder created it for the corporation, he would have to show something which allowed him to retain rights. He absolutely cannot take the sign, even if he has rights in the logo - which are doubtful. You should have some bylaws which regulate the procedure to remove employees, officers and directors. The shareholder is technically not a partner. If you do not have bylaws, then the operations of the corporation are governed by the Utah Corporations Act. One or the other will govern how the corporation deals with these kinds of problems.

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Answered on 8/16/04, 10:43 pm


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