Duties upon legal disqualification of officer, stockholder, director or employee; qualifications of officer or director; death of stockholder whose interest is in revocable trust.
1. If any officer, stockholder, director or employee of a corporation organized under this chapter who has been rendering professional service to the public becomes legally disqualified to render such professional services within this State, he shall sever within a reasonable period all professional service with and financial interest in the corporation, but this chapter does not prevent a corporation formed under this chapter from entering into a contract with an employee which provides for severance pay or for compensation for past services upon termination of professional service, whether by death or otherwise.
2. Except as otherwise provided in NRS 623.349, a natural person may not be an officer or director of a corporation organized under this chapter unless he is licensed to render the same specific professional services as those for which the corporation was incorporated.
3. Upon the death of a stockholder of a corporation who has transferred his interest in the corporation to a revocable trust as permitted by NRS 89.070, the trustee of the revocable trust may continue to retain any interest so transferred, including corporate shares, for a reasonable period, but may not exercise any authority concerning the rendering of professional services and may not, except as otherwise provided in NRS 623.349, distribute the corporate interest to any person not licensed to render the services for which the corporation was incorporated.
4. A corporation’s failure to require compliance with the provisions of this section is a ground for the forfeiture of its charter.
Last modified: February 26, 2006