Natural Corporation often fails to file the annual reports required by law. They also have failed to conduct annual shareholders meeting and their bylaws have been out of date and not followed for about four years. What could be the result of this malfeasance?

Question

Quizplus · Accepted Answer

Failing to adhere to corporate formalities such as filing annual reports, conducting shareholder meetings, and maintaining current bylaws can lead to the piercing of the corporate veil. This means that the legal separation between the corporation and its shareholders can be disregarded, potentially exposing shareholders to personal liability for the corporation's debts and obligations.

Natural Corporation Often Fails to File the Annual Reports Required