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Can a husband and wife be members of the board of directors?

Your Legal Questions Answered

Can a husband and wife be members of the board of directors?

Can a husband and wife be members of the board of directors? And can a member of the Board be a paid employee of the corporation?

Yes and yes. Although a few states may have laws that required a majority of the Board to be “independent,” i.e. unrelated to each other, I am not aware of any state that prohibits spouses from serving together. Whether or not it makes sense, of course, depends on the circumstances. (See Ready Reference Page: “The Key Question: Whose Organization Is It?”)
 
It is also possible to have employees serve on the Board, but it is a very rare event in which any employee other than the CEO serves on the Board. Perhaps if a husband and wife pair of founders both work for the organization it would make sense, but having subordinate employees on the Board can often cause problems of authority. There are some state laws that require a majority of directors to be unpaid.
Friday, March 14, 2008

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