Operating a Corporation
Corporate Operating Formalities
Even if your corporation is run by a single person/director there are still
certain formalities which must be met in order to maintain corporate status and
avoid unintentional noncompliance with state law. One such example is the
initial and annual meetings. General Corporate Services provides the initial
meeting minutes in our complete package. The annual meetings are provided as
part of our annual resident agent services.
Corporate officers typically consist of the president, vice president,
treasurer and secretary. Optionally, there may be additional positions. Many
states allow one person to hold all of the offices. The authority and
responsibilities of each officer are outlined in the corporate bylaws.
Is usually elected by the Board of Directors and is responsible for carrying
out the orders issued by the Board of Directors.
Although the Board of Directors will most likely dictate actual financial
policies, it is the duty of the treasurer to manage corporate bank accounts,
and record corporate finances.
Is generally responsible for maintaining and keeping corporate records.
Board of Directors
The Board of Directors is the governing body that directs the fundamental
policies and major undertakings of the corporation. The directors usually elect
the president and leave general operations and day-to-day business to the
president and other officers under their employ.
Shareholders (also called stockholders) are the owners of a corporation. As
such, the board of directors and the officers of the company owe a fiduciary
duty to the shareholders to do what is in their best interest. Specific
shareholder rights are outlined in company bylaws and in state law. Though
specific duties and reporting practices vary from state to state, the
shareholders generally vote on the president, the election of the board of
directors and any major changes in the composition or organization of the
Corporate resolutions are not required for every corporate decision. However it
would be prudent to record the major decisions of the corporation in the form
of written resolutions. This strengthens the corporations legal shield by
providing solid evidence that any actions were taken on behalf of the
corporation and not on behalf of the owners or officers.
is a document filing service and cannot provide you with legal or financial
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