2023 New York Laws › BSC - Business Corporation › Article 15 - Professional Service Corporations › 1509 - Disqualification of Shareholders, Directors, Officers and Employees.

* § 1509. Disqualification  of  shareholders,  directors,  officers  and
employees.
If any shareholder, director, officer or employee  of  a  professional
  service   corporation,   including   a   design   professional   service
  corporation, who has been rendering professional service to  the  public
  becomes  legally  disqualified  to  practice  his profession within this
  state, he shall sever  all  employment  with,  and  financial  interests
  (other  than  interests as a creditor) in, such corporation forthwith or
  as otherwise provided in section 1510 of this article. All provisions of
  law regulating the  rendering  of  professional  services  by  a  person
  elected  or  appointed  to  a  public  office  shall  be applicable to a
  shareholder, director, officer and employee of such corporation  in  the
  same  manner  and  to the same extent as if fully set forth herein. Such
  legal disqualification to practice  his  profession  within  this  state
  shall  be  deemed to constitute an irrevocable offer by the disqualified
  shareholder to sell his shares  to  the  corporation,  pursuant  to  the
  provisions  of  section  1510  of  this article or of the certificate of
  incorporation, by-laws  or  agreement  among  the  corporation  and  all
  shareholders, whichever is applicable. Compliance with the terms of such
  offer  shall  be specifically enforceable in the courts of this state. A
  professional service corporation's failure to  enforce  compliance  with
  this   provision  shall  constitute  a  ground  for  forfeiture  of  its
  certificate of incorporation and its dissolution.
* NB Effective until June 8, 2024
  * § 1509. Disqualification  of  shareholders,  directors,  officers  and
employees.
If  any  shareholder,  director, officer or employee of a professional
  service   corporation,   including   a   design   professional   service
  corporation,  who  has been rendering professional service to the public
  becomes legally disqualified to practice his or  her  profession  within
  this  state,  he  or  she shall sever all employment with, and financial
  interests (other than interests as  a  creditor)  in,  such  corporation
  forthwith  or as otherwise provided in section 1510 of this article. All
  provisions of law regulating the rendering of professional services by a
  person elected or appointed to a public office shall be applicable to  a
  shareholder,  director,  officer and employee of such corporation in the
  same manner and to the same extent as if fully set  forth  herein.  Such
  legal  disqualification  to  practice  his or her profession within this
  state shall  be  deemed  to  constitute  an  irrevocable  offer  by  the
  disqualified  shareholder  to sell his or her shares to the corporation,
  pursuant to the provisions of section 1510 of this  article  or  of  the
  certificate of incorporation, by-laws or agreement among the corporation
  and all shareholders, whichever is applicable. Compliance with the terms
  of  such  offer  shall be specifically enforceable in the courts of this
  state.  A  professional  service  corporation's   failure   to   enforce
  compliance  with this provision shall constitute a ground for forfeiture
  of its certificate of incorporation and its dissolution.
* NB Effective June 8, 2024