can a shareholder/director of a sub s corporation transfer an asset out of the corporation and into his personal name

Question

can a shareholder/director of a sub s corporation transfer an asset out of the corporation and into his personal name

Answer

As a Franchise Attorney I can this. The transfer of corporate assets to a shareholder/director is possible. But it must be pursuant to an arms length agreement between the corporation and the individual. Depending on the asset, the transaction may also require approval of the Board of Directors. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation