What happens if a professional corporation's licensed shareholder is suspended by their regulator?

A suspension of the licensed shareholder is generally a serious problem for the corporation, not just for the individual, since the certificate of authorization depends on having an active, licensed member in good standing responsible for the practice. Most governing bodies require the corporation to notify them of a shareholder's suspension, and the corporation's own authorization can be suspended or made conditional alongside the individual's licence, particularly where that shareholder was the sole licensed professional involved.

During a suspension, the corporation generally cannot have the suspended individual continue providing the regulated professional services through the corporation, even though the corporate entity itself still exists. If there's another licensed shareholder able to take over responsibility for the practice, the corporation may be able to continue operating under that person, subject to notifying the regulator. If the suspended individual was the only licensed shareholder, the practice may need to pause or transfer entirely until the suspension ends or is resolved. Because the specific consequences and notification obligations differ by governing body, get advice promptly rather than assuming the corporation can keep operating as before.