Section 35 Shareholder Intangibles

• Library: Bus Trans 2005

A controlling shareholder of a corporation may have created and developed personal relationships and other intangible value outside the corporate entity with customers, suppliers, and other third parties. In the absence of a noncompetition agreement or restrictions in an employment agreement between the shareholder and the corporation, these intangible assets may be personal assets of the shareholder; if so, any consideration received would be appropriately paid to, and recognized by, the shareholder for...