What can be done to remove a director/owner of an S-corp?

UPDATED: Aug 23, 2014

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What can be done to remove a director/owner of an S-corp?

The corporation consists of just 2 directors; each owns 50% of the shares. One director is continually taking out unauthorized loans and violating the by-laws.

Asked on August 23, 2014 under Business Law, Utah


Shawn Jackson / The Jackson Law Firm, P.C.

Answered 8 years ago | Contributor

On the assumption that there is no shareholder's agreement that addresses a 'deadlock" provision...and on the assumption that you two are not getting along, I would initially suggest that you contact one of the many low cost or free business dispute mediation services. If you cannot locate one, feel free to contact us for more information on locating a low cost or free mediation service.

Shawn Jackson - Business Development Attorney

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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