• October 2018
    M T W T F S S
    « Sep    
    1234567
    891011121314
    15161718192021
    22232425262728
    293031  

How can the same person hold more than 1 board seat at the same company?

My answer to How can the same person hold more than 1 board seat at the same company?

Answer by Raad Ahmed:

There is nothing in the law itself that would prevent the same person from holding more than one board seat in a company. However, the guiding principles to answer this question would come from the corporate by-laws which are the “laws of the company.”

As long as this practice is not prohibited in the by-laws, there should not be a problem. However, as the other posters note any board member regardless of how many seats he or she holds would owe a fiduciary duty to shareholders which would include a prohibition against self-dealing. Although not per se a violation I could see a situation in which decision making power being concentrated too much in one person could create the potential for issues in this area and send the wrong signal to investors and shareholders.

If you’d like to dig deeper with an experienced startup lawyer, feel free to check out LawTrades.

How can the same person hold more than 1 board seat at the same company?

Legal is hard. Let’s tackle it together.

Speak to one of our Legal Pros and discover how we can help.

Let's Talk
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]
[if lte IE 8]