Section 280g Regulations
Section 280g was created to protect the interests of shareholders by stopping corporations from making unreasonably large payments to disqualified individuals when control of a corporation changes hands.
Section 280g regulations. In general section 280g applies to payments under agreements entered into or renewed after june 14 1984. 280g f regulations the secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section including regulations for the application of this section in the case of related corporations and in the case of personal service corporations. The regulations under 280g have generally adopted objective rules to determine whether a change in ownership or control has occurred.
Section 280g applies only to corporations both public and private. Section 280g also applies to certain payments under agreements entered into on or before june 14 1984 and amended or supplemented in significant relevant respect after that date.