Can an agent for service of process be financially interested in a corporation?

Answer 1

Generally speaking, yes, the agent may have a financial interest in the corporation for which he/she is the agent for service of process. However, one must look to the corporate law of the state in which the corporation was created and sometimes that of the state in which it does business to see exactly what that state requires regarding registered agents.

For example in New Jersey the eligibility requirements are simply that the registered agent have an address that is the same as the corporation's registered address and that the agent be either: (1) a natural person at least 18 years old and residing in the state, or (2) a corporation with authority to transact business in the state. Nothing in the law states that the registered agent may not have a financial interest in the corporation. Other states may have other requirements.

It's obvious the question refers to a person who is acting as an agent for service of process (actually usually referred to as a "registered agent") of a particular corporation and whether that person can have a financial interest in that corporation. The opportunity for such an agent to either refuse, evade or pretend he/she ever received legal process in order to protect his/her financial interest is all too evident.

The possibility of a financially interested agent for service of process doing anything to avoid process is slim. If process is served upon him/her the process server files an affidavit of proof of service and the lawsuit commences with or without the corporation's participation.

If the financially interested agent tries to defeat service of process by hiding from the process server, the process may be served upon the Secretary of whatever state department oversees corporate matters. The State then sends the paperwork to the corporation and service of process is now complete.

Either way, as far as service of process goes, it makes no difference whether or not the agent has a financial stake in the corporation.