A Tennessee corporation holds title to a commercial warehouse in Chattanooga. The corporation's CEO retires. Which statement best describes the effect of the CEO's retirement on the corporation's ownership of the warehouse?
Correct Answer
D) The corporation retains full ownership because corporate ownership is unaffected by changes in personnel
A corporation is a legal entity separate from its officers, directors, and shareholders. In Tennessee, when a corporation holds title to real property, changes in corporate personnel — including the retirement, death, or replacement of the CEO — have no effect on the corporation's ownership of the property. The corporation continues to hold title unchanged. This is one of the key advantages of corporate ownership: perpetual existence and continuity of title.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A freehold estate represents ownership of real property with an indefinite duration.
Joint tenancy is a form of co-ownership in which two or more persons hold equal, undivided interests in property with the right of survivorship. When one joint tenant dies, their interest automatically passes to the surviving joint tenants.
A leasehold estate grants the right to possess and use property for a defined period of time, without conferring ownership.
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