Upon the death of the majority stockholder in a corporation, direct control may pass to

Question

Quizplus · Accepted Answer

Upon the death of the majority stockholder, control of the corporation may pass to an executor who is responsible for managing and distributing the estate of the deceased, which may include the stock in the corporation. The heirs may eventually inherit the stock, but initially, the executor will have control. The founder of the firm or employees under an employee stock ownership plan would not necessarily have direct control over the corporation upon the death of the majority stockholder.

Upon the Death of the Majority Stockholder in a Corporation