Corporate Law Business inheritance

[mrazektrail]

In a future inheritance, I am to be named Chief Executive Officer of a successful company by my uncle. I will be in charge of all financial and operating procedures and given complete authority to name any Chief Manager that I see fit. I am to be given 60% stock in the company and his daughter is given 40% stock. 40% of the annual net profit goes to myself and 40% of the profit is to go to her. My question is as CEO of this company, does my salary come before annual net profits are determined and who determines my salary? Also, with this 60/40 split in stock how much say do they have in decisions of the company?

 

[army judge]

In a future inheritance, I am to be named Chief Executive Officer of a successful company by my uncle. I will be in charge of all financial and operating procedures and given complete authority to name any Chief Manager that I see fit. I am to be given 60% stock in the company and his daughter is given 40% stock. 40% of the annual net profit goes to myself and 40% of the profit is to go to her. My question is as CEO of this company, does my salary come before annual net profits are determined and who determines my salary? Also, with this 60/40 split in stock how much say do they have in decisions of the company?

You should read the articles of incorporation, as they vary by entity.

That said, if you held 60% ownership, you'd reign supreme.

Salary, read the company's documentation. Also, you should have a contract, that details salary. If you don't get one, you might not want to become involved. You should take everything concerning your offer to YOUR attorney and see what you're getting yourself into.

That includes the financials. Getting 60% of a company in the red, is worth less than getting 10% of a company turning $10,000,000 a quarter in profits.

As CEO, you also need to know what that 40% means to your cousin.

You need your lawyer to review everything. If there's nothing in writing, you might not want anything to do with this.


Sent from my iPad3 using Tapatalk HD

 

[mrazektrail]

Let me clarify that this is how it is spelled out in a will. This company is a sole ownership business. There are no boards or other parties to provide input. Any salary arrangement or contract would be written by myself. I just want to be sure that if I eventually have to uproot my career to run this business, which could be lucrative, that I am not doing all of the work and giving 40% away. The will stipulates that she gets 40% of the net profits at no more than $60,000 per year.

 

[army judge]

Let me clarify that this is how it is spelled out in a will. This company is a sole ownership business. There are no boards or other parties to provide input. Any salary arrangement or contract would be written by myself. I just want to be sure that if I eventually have to uproot my career to run this business, which could be lucrative, that I am not doing all of the work and giving 40% away. The will stipulates that she gets 40% of the net profits at no more than $60,000 per year.

Again, if you're worried about being duped, cheated, or tricked; you'd serve yourself well to hire a lawyer.

You need a lawyer to review EVERYTHING, and that means you PAY a lawyer to do that for you.

There is no way you TRUST some strangers from an internet site with such an important decision.

I wish you well.