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 and 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 closely held corporations to ensure proper management and decision-making. It also helps in maintaining corporate formalities that can prevent legal difficulties. Option B is incorrect as allowing stockholders to make all major decisions can create conflicts of interest and may not be in the best interest of the corporation. Option C is completely incorrect as mingling corporate and personal assets can lead to legal complications and may even jeopardize the limited liability protections associated with incorporation. Therefore, option A is the correct choice.

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