What would happen to a big business of a convicted murderer?
I Watch TV asked:
I’m writing a short story and I need to know – if the owner of a big business – steel plant owner – were to murder someone and be convicted of it, what would happen to the company? In the story, his son is old enough and experienced enough to take over the company. Would it pass to him? Or would some board of directors meet and decide upon it? The steel plant itself is not involved in any way in the murder – it’s just a side note – so I don’t think it would have to close. This is set in the USA by the way.
I’m writing a short story and I need to know – if the owner of a big business – steel plant owner – were to murder someone and be convicted of it, what would happen to the company? In the story, his son is old enough and experienced enough to take over the company. Would it pass to him? Or would some board of directors meet and decide upon it? The steel plant itself is not involved in any way in the murder – it’s just a side note – so I don’t think it would have to close. This is set in the USA by the way.
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THE BOARD DECIDES WHAT HAPPENS BUT THE FAMILY MIGHT INHERIT IT Danny
The stockholders would choose a new CEO to run the company. The owner’s family would still get money from the companie’s profits, but someone would have to be put in charge Brad
Realistically? The family of the victim would sue him and he would end up losing all his assets, including the stiock he owned in the steel plant. Michael H
If he was the owner, going to jail wouldn’t have any effect on that. He would still own the same percentage of the company. He can transfer whatever % of the company he owns to a family member.
Who would take over the operations is a different thing though. All the owners would get together and vote on who would be in charge. Possum
The board of directors would keep things going and if the guy going to jail was the director, they would hold elections for a new head of the board. Red River
Just because a person is convicted he does not lose any right to own property. He will be able to continue to run his business if possible from prison if he wants to.
If he is a sole owner he would not have a board of directors, of if the business is not publicly traded. If he has sold stock in the business the stockholders could vote to replace him, if they have enough votes. If he kept 51% of the stock for himself then likely he can still do what ever he wants to do with his business.
Good Luck Cindy B
If the person were the sole owner of the business he would retain ownership even while he was in prison.
If there is a board of directors then there is no sole owner and ownership is held by the individual stockholders. In this case the board of directors would meet, then select a person to take over as CEO. Depending on the company’s bylaws the stockholders may then vote on whether or not to approve the board’s choice. MikeGolf