Contract Rights of Officers

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  1. The appointment of an officer does not itself create contract rights.
  2. An officer's removal does not affect the officer's contract rights, if any, with the corporation. An officer's resignation does not affect the corporation's contract rights, if any, with the officer.

(Code 1981, §14-2-844, enacted by Ga. L. 1988, p. 1070, § 1.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 18B Am. Jur. 2d, Corporations, § 1291 et seq.

C.J.S.

- 19 C.J.S., Corporations, §§ 539 et seq., 625, 627.

ALR.

- Construction of contract which fixes compensation of officer or employee with reference to dividends, 41 A.L.R. 871.

Right of court to interfere with amount of salaries voted to officers of private corporations by directors, 44 A.L.R. 570.

Estoppel of stockholder to recover back or to secure restoration of compensation of corporate officers claimed to be exorbitant or unauthorized, 16 A.L.R.2d 467.

Right of corporate officer to recover compensation for time period between original improper discharge and a subsequent legal discharge, 82 A.L.R.2d 965.

Payment of premiums by corporation on corporate officer's life insurance policy as affecting right to policy, 56 A.L.R.3d 1086.

PART 5 INDEMNIFICATION

Law reviews.

- For article discussing liability of corporate directors, officers, and shareholders under the Georgia Business Corporation Code, and as affected by provisions of the Georgia Civil Practice Act, see 7 Ga. St. B. J. 277 (1971). For article, "The Dynamics Among Shareholders, Directors, and Officers in Corporate Organizations Under Georgia Law," see 37 Mercer L. Rev. 79 (1985).

JUDICIAL DECISIONS

Editor's notes.

- In light of the similarity of the statutory provisions, a decision under former Code Section 14-2-156, which was repealed by Ga. L. 1988, p. 1070, § 1, effective July 1, 1989, is included in the annotations for this part.

Premature claim for indemnification.

- In the corporation's action to obtain injunctive relief against the corporation's former counsel, in which the corporation prevailed but no proper determination had been made that counsel had acted in the best interests of the corporation in any phase of the litigation, counsel's claim for indemnification was premature and should have been dismissed. Henson v. American Family Corp., 171 Ga. App. 724, 321 S.E.2d 205 (1984) (decided under former § 14-2-156).


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