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This entry was published on 2014-09-22
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Disqualification of shareholders, directors, officers and employees
Business Corporation (BSC) CHAPTER 4, ARTICLE 15
§ 1509. Disqualification of shareholders, directors, officers and


If any shareholder, director, officer or employee of a professional
service corporation, including a design professional service
corporation, who has been rendering professional service to the public
becomes legally disqualified to practice his profession within this
state, he shall sever all employment with, and financial interests
(other than interests as a creditor) in, such corporation forthwith or
as otherwise provided in section 1510 of this article. All provisions of
law regulating the rendering of professional services by a person
elected or appointed to a public office shall be applicable to a
shareholder, director, officer and employee of such corporation in the
same manner and to the same extent as if fully set forth herein. Such
legal disqualification to practice his profession within this state
shall be deemed to constitute an irrevocable offer by the disqualified
shareholder to sell his shares to the corporation, pursuant to the
provisions of section 1510 of this article or of the certificate of
incorporation, by-laws or agreement among the corporation and all
shareholders, whichever is applicable. Compliance with the terms of such
offer shall be specifically enforceable in the courts of this state. A
professional service corporation's failure to enforce compliance with
this provision shall constitute a ground for forfeiture of its
certificate of incorporation and its dissolution.