I'm studying basic company law, and I have to research and present a comprehensive report detailing and discussing the 'relevant law' to which the above question pertains. It relates to a precedent case: "Lee v Lee's Air Farming Ltd. [1961] AC 12". I've only been able to find a brief summary of the case itself. I do understand that companies and individuals are defined as "separate legal personalities" (see Salomon v Salomon & Co. [1897]), but I really need to know where I can find on-line information regarding the 'relevant law' to which the "Lee's Air Farming" case refers; and for that matter, any more details (transcripts, essays, etc) about the case itself. Any clues...? Thanks for your time.
2007-02-23 02:30:18 · 2 answers · asked by John 2 in Business & Finance ➔ Corporations
Yes, the company or LLC or Corp is a separate entity and can hire you as well as others. You can be the shareholder, on the board of directors, and an officer.
2007-02-23 03:45:46 · answer #1 · answered by hebb 6 · 0⤊ 0⤋
ABSOLUTELY....I HAVE SEVERAL CLIENTS WHERE THIS IS THE CASE THEY ARE THE ONLY SHAREHOLDER AND THE DIRECTOR AND THEY ARE AN EMPLOYEE...THERE IS A "REASONABLE COMPENSATION" ISSUE IN THESE CASES, MEANING THAT THE SALARY CAN NOT BE WAY OUT OF LINE FOR THE JOB WHICH THEY PERFORM...THEY CAN NOT PAY THEMSELVES SAY $150/HOUR TO STOCK A SHELF, OF COURSE THEY WOULD LIKELY BE A MANAGER BUT IF THE MANAGEMENT POSITION REASONABLE PAID 45K A YEAR THEN THERE WOULD BE AN ISSUE IT THE SHAREHOLDER WAS BEING PAID 100K FOR THE YEAR...THE IRS WOULD CONSIDER THE EXCESS TO BE A DIVIDEND...ALSO THERE IS A SEPARATE PLACE ON THE CORPORATE RETURN WHERE THE SALARIES AND COMPENSATION OF OFFICERS IS LISTED APART FROM OTHER SALARIES AND COMPENSATION PAID TO EMPLOYEES OF THE CORP
2007-02-23 13:37:12 · answer #2 · answered by kay 2 · 0⤊ 0⤋