Question

Can an ex-felon serve as a Board of Director or CEO of a publicly traded company?

I'm researching a newly formed company called Medical Marijana, Inc. (MJNA.PK) whose founder, Bruce Perlowin, owner of www.bruceperlowin.com/, is a convicted felon who served 15 years for running a drug ring and has gone legal now. Bruce is leaving the company for whatever reasons, but i wanted to know to what level of management can an ex-felon have in a publically traded corporation...

3 years ago - 3 answers

Best Answer

Chosen by Asker

No. it contradicts with the Corporate Governance and i dont think SEC allows it

3 years ago

Other Answers

This is a great question. Firstly, I think this question would receive better attention at www.felonsforum.com . There you will find a good crew of ex-offenders dedicated to helping find information and offer resources to ex-offenders.

Regarding your question: As far as I understand it, a felon may be a CEO or serve as a member on a Board of Directors, if the corporation allows it. Many corporations have built in clauses that forbid ex-offenders from such positions, but legally, as for what I've personally researched, there is no law which forbids an ex-offender of such a position.

Ex-offenders can open a business, if you were to start a business, as an ex-offender, and the business expands, and eventually goes public; as the founder you may become the CEO. Of course being an ex-offender, you couldn't become the founder of a beer factory or a gun warehouse, or the like...

I've never researched it, but I'm pretty certain there are CEO's that are ex-offenders. ... A 'Publicly traded business' is its own entity, and if it allows you to be in such a position, it's completely legal to be there.

Come by the site, www.felonsforum.com and ask this question. There's a few member's there that may have some very interesting information to share with you further about this topic.

Hope this helps!

by D - 3 years ago

Yes, an ex-felon can be a President or CEO or hold any position in a publicly traded company. There are no SEC laws or any laws preventing it. However, a BOD has to consider the public sentiments and reaction to having an ex-felon run a company. Would you buy stock in such a company? That is one of many issues that would arise.

by John - 3 months ago