In a closely held corporation,one of the steps that should be taken to avoid legal difficulties is:
A)hold annual meetings to elect officers are directors.
B)make sure that the stockholders make all the major decisions.
C)mingle corporate assets and the personal assets.
D)None of the above

Question

Quizplus · Accepted Answer

Holding annual meetings to elect officers and directors is important in a closely held corporation to ensure that proper corporate governance is followed and to avoid potential legal issues that can arise from a lack of proper corporate compliance. It also helps to establish clear lines of authority and decision-making within the company. Option B is incorrect because while stockholders have a voice in major decisions, they do not make all the decisions. Option C is incorrect because mingling corporate and personal assets is not only unethical, but it can also lead to potential legal issues and liability. Option D is incorrect because there is a correct answer to this question.

In a Closely Held Corporation,one of the Steps That Should