§ 1509 — Disqualification of shareholders, directors, officers and employees

New York § 1509

• Jurisdiction: New York
• Law BSC: Business Corporation
• Art. 15: Professional Service Corporations

Text

§ 1509. Disqualification of shareholders, directors, officers and\n employees.\n If any shareholder, director, officer or employee of a professional\nservice corporation, including a design professional service\ncorporation, who has been rendering professional service to the public\nbecomes legally disqualified to practice his or her profession within\nthis state, he or she shall sever all employment with, and financial\ninterests (other than interests as a creditor) in, such corporation\nforthwith or as otherwise provided in section 1510 of this article. All\nprovisions of law regulating the rendering of professional services by a\nperson elected or appointed to a public office shall be applicable to a\nshareholder, director, officer and employee of such corporation in the\nsame manner and to the same extent as if fully set forth herein. Such\nlegal disqualification to practice his or her profession within this\nstate shall be deemed to constitute an irrevocable offer by the\ndisqualified shareholder to sell his or her shares to the corporation,\npursuant to the provisions of section 1510 of this article or of the\ncertificate of incorporation, by-laws or agreement among the corporation\nand all shareholders, whichever is applicable. Compliance with the terms\nof such offer shall be specifically enforceable in the courts of this\nstate. A professional service corporation's failure to enforce\ncompliance with this provision shall constitute a ground for forfeiture\nof its certificate of incorporation and its dissolution.\n