Eager Beaver Corporation fails to hold its organizational meeting to adopt bylaws. Under this circumstance, Eager Beaver is most likely

Question

Quizplus · Accepted Answer

A de facto corporation exists when there is a good faith effort to comply with the incorporation statute, but there is a defect in the incorporation process. In this case, Eager Beaver has failed to hold its organizational meeting, which is a defect in the incorporation process. However, if it has otherwise made a good faith effort to comply with the incorporation statute, it may still be considered a de facto corporation.

Eager Beaver Corporation Fails to Hold Its Organizational Meeting to Adopt