Contract rights of officers

(a) The appointment of an officer does not itself create contract rights. (b) An officer’s removal does not affect the officer’s contract rights, if any, with the corporation. An officer’s resignation does not affect the corporation’s contract rights, if any, with the officer. (Code 1981, § 14-2-844, enacted by Ga. L. 1988, p. 1070, § 1.) COMMENT Source: Model Act, § 8.44. There is no change from former law, § 14-2-151(d). Section 14-2-844 makes clear that the appointment of an officer does not itself create contract rights in the officer. The removal of an officer with contract rights is without prejudice to his later enforcement of contract rights in a suit for damages for breach of contract. See the Comment to Section 14-2-843. Similarly, an officer with an employment contract who prematurely resigns may be in breach of his employment contract. The mere appointment of an officer for a term does not create a contractual obligation on his part to complete the term. 266 14-2-850 Cross-References Appointment of officers and assistant officers, see § 14-2-840. Resignation or removal of officers, see § 14-2-843.