To Avoid Personal Liability, Observe Corporate Rules

The primary reason most entrepreneurs establish corporations is to avoid personal liability. But ignoring the formalities can jeopardize corporate protection

My wife and I are the only shareholders of our C corporation. How many shareholders and directors board meetings must we hold annually? Must the board make decisions on topics such as leases and pension plans that can be carried out directly by the CEO, or can the CEO act independently? —G.C., Winter Springs, Fla.

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