Delaware Code Title 8 Sec. 611 – Disqualification of officer, shareholder, agent or employee
(a) Any officer, employee, agent or shareholder of a professional corporation shall forthwith sever all employment with, and financial interests in, the professional corporation in the event that such person:
(1) Becomes legally disqualified to render such professional service within this State;
(2) Is elected to a public office that, pursuant to existing law, places restrictions or limitations upon such person’s continued rendering of such professional service; or
(3) Accepts employment that, pursuant to existing law, places restrictions or limitations upon such person’s continued rendering of such professional service.
Terms Used In Delaware Code Title 8 Sec. 611
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- employee: as used in this chapter , clerks, secretaries, nurses, administrators, bookkeepers, technicians and other assistants who are not usually and ordinarily considered by law, custom and practice to be rendering professional services to the public for which a license, or other legal authorization, is required in connection with the profession to be practiced, nor does the term "employee" include any other person who performs all of such person's employment under the direct supervision and control of an officer, employee or agent who renders professional service to the public on behalf of the professional corporation; provided that, no person shall, under the guise of employment, practice a profession unless duly licensed to practice that profession under the laws of this State. See Delaware Code Title 8 Sec. 607
- professional corporation: means a corporation which is organized and incorporated, under this chapter, for the sole and specific purpose of rendering a single professional service or qualified related professional services, and which has as its shareholders only individuals who themselves are duly licensed or otherwise legally authorized within this State to render the same professional service, or those component qualified related professional services, as the corporation. See Delaware Code Title 8 Sec. 603
- professional service: shall mean any type of personal service to the public which requires as a condition precedent to the rendering of the service the obtaining of a license or other legal authorization, and which, by reason of law, prior to June 7, 1969, could not be performed by a corporation. See Delaware Code Title 8 Sec. 603
- State: means the State of Delaware; and when applied to different parts of the United States, it includes the District of Columbia and the several territories and possessions of the United States. See Delaware Code Title 1 Sec. 302
(b) A professional corporation’s failure to require compliance with subsection (a) of this section shall constitute a ground for the forfeiture of its charter and its dissolution. When a professional corporation’s failure to comply with subsection (a) of this section is brought to the attention of the office of the Secretary of State, the Secretary of State shall forthwith certify that fact to the Attorney General for appropriate action to dissolve the professional corporation.
8 Del. C. 1953, § ?611; 57 Del. Laws, c. 127; 64 Del. Laws, c. 112, § ?70; 71 Del. Laws, c. 339, § ?111; 80 Del. Laws, c. 184, § ?1;