question.jpgIn Business Law

What formalities does my corporation have to follow?

One of the reasons that a corporation is a significantly more burdensome business form in comparison with sole proprietorships and partnerships is that there are certain formalities that corporations must follow. For example, corporations must hold annual meetings of shareholders and annual meetings of directors. While not usually required, corporations often also hold special meetings of shareholders or special meetings of directors, which are essentially impromptu meetings that take place before the next annual meeting. State laws also generally require corporations to keep minutes of all such meetings.