QUESTION

As President of a sub s corp, am I entitled to any proffitt from the company, even if I did not invest money initially?

Asked on Dec 27th, 2012 on Business Law - Florida
More details to this question:
I feel taken advantage of, and even taken for a fool. My partner fails to inform me of a lot whithin the business. Im not certain of my responsibilities, rights, and liability as a President of a company I do not control, nor make decisions for. I would really appreciate your feedback. Thanks for your time!
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3 ANSWERS

What services are you providing to the corporation?  Are you also a shareholder?  You should have a written employment agreement and/or shareholders' agreement that spells out your duties and compensation.
Answered on Dec 28th, 2012 at 10:54 AM

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Trial Practice Attorney serving West Palm Beach, FL
4 Awards
Officers of a corporation and partners in a partnership owe a fiduciary duty to the shareholders and the other partners, respectively. You have a right to an accounting and a right to examine the corporate books. Even though you did not initially invest any money in the company, if you provided services to the company, or gave the company "capital" in the form of equipment etc. you have "invested" in the company. I offer a free 15-minute phone consultation if you'd like to discuss this matter further. 
Answered on Dec 28th, 2012 at 10:32 AM

LEGAL DISCLAIMER ¿ I am not seeking to represent you based on the response to this question. The answer given is for general information purposes only. No attorney-client relationship is hereby intended.

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Appellate Practice Attorney serving New York, NY
Whether you are an owner (shareholder) of the corporation, or merely an employee, your compensation is whatever you agreed to.  If your employment agreement (even if it is not in writing) provides that you are entitled to a share of profits, you are.  If you were a shareholder, and the shareholder's agreement provided that you were entitled to a particular share of profits, you would be.  As a general rule, if you never discussed profit sharing before you took the job, a shareholder would be entitled to a share of profits (generally in proportion to what that shareholder invested, which could depend not only on money invested, but also time, effort, and expertise), and an employee would not.
Answered on Dec 28th, 2012 at 10:22 AM

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