If you are a significant shareholder of a company as well as a paid employee, can the President on the board fire you with no valid reasonexcept personal malice?
1 Answer from Attorneys
Generally any employee (including shareholders) can be hired/fired for any reason except if there is an employment agreement in place or if the dismissal was for discriminatory reasons. Under certain circumstances a shareholder employee might have causes of action against fellow shareholders based on fiduciary duties or based on derivative cause of action. The company's docs and the specific circumstances would need to be reviewed to render a proper opinion.
Feel free to contact my office at your earliest convenience.
Roman R. Fichman, Esq.
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