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January 17, 2014

A Corporate President's Power May Be Inherently Limited

In a recent decision, the Worcester Superior Court ruled that the president of a corporation has limited power with respect to the firing of corporate officers. The court explored the powers of a corporate president and his ability to hire and fire at-will employees under the guise of his general authority. In that case, the court held that the president's firing of the vice president without support from the board of directors was ineffective.

In Arklow, Inc. et al. v. Weadock, the court addressed the issue of whether a president's unilateral termination of the vice president was effective. Arklow, Inc. and Arlow, LP sought injunctive relief against Daniel Weadock to remove him from his position as the manager at the International, a local golf course owed by the partnership. This court proceeding shortly followed the decision of Bryan Weadock, the president of Arklow, Inc., to fire Daniel Weadock, the vice president at Arklow, Inc. and manager of the International. The court's opinion involved a discussion of the principals of corporate law, as it analyzed the difference between Daniel's managerial role and his role as vice president.

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