What happens to a corporation and its contractor's license if an officer or stockholder leaves or dies?

What happens to a corporation and its contractor's license if an officer or stockholder leaves or dies?

• A. Nothing, unless the officer is the qualifying individual
• B. The license automatically terminates
• C. The license must be reissued
• D. The corporation must dissolve

Answer: (A)

For a corporate license, the important factor is the qualifying individual—the person who meets the experience requirements and is designated to supervise the work. If an officer or stockholder leaves or dies but that person is not the qualifying individual, nothing changes for the license. The company remains licensed and can continue under the same qualifying individual. The departure of non-qualifying officers doesn’t affect the license. Only if the qualifying individual leaves or dies does the corporation need to appoint a new qualifying individual and obtain approval from the board; until that happens, the license isn’t active for new work in the sense of having a new supervisor. The corporation isn’t dissolved simply because another officer departs.

For a corporate license, the important factor is the qualifying individual—the person who meets the experience requirements and is designated to supervise the work. If an officer or stockholder leaves or dies but that person is not the qualifying individual, nothing changes for the license. The company remains licensed and can continue under the same qualifying individual. The departure of non-qualifying officers doesn’t affect the license. Only if the qualifying individual leaves or dies does the corporation need to appoint a new qualifying individual and obtain approval from the board; until that happens, the license isn’t active for new work in the sense of having a new supervisor. The corporation isn’t dissolved simply because another officer departs.