The Best Corporate Structure for a Group of Five Investors
Based on the individual preferences of the group of five investors, I am recommending the organizing of a corporate structure as the ideal form of organization to start a retailing business. More specifically a sub chapter S corporation will allow the shareholders to be treated as partners for tax purposes and retain the benefit of limited liability. The maximum number of shareholders a sub chapter S corporation can have is 75, so the 5 members are well within the requirement. The corporate structure will limit the liability of the shareholders that prefer management input in the organization. In a partnership the need to have ...view middle of the document...
II. Board of Directors
1. The Board of Directors shall serve without pay and consist of Five members.
2. Board members shall serve four year terms.
3. Vacancies shall be filled by the Board, with the recommendation of the Executive Director.
4. Board members with five of absences shall dismissed from the Board.*
1. The officers of the board shall consist of a Chair, Vice Chair, Secretary, and Treasurer nominated by the Board.
2. Elected officers will serve a term of one year.
3. (a)The Chair shall preside at all Board meetings, appoint committee members, and perform other duties as associated with the office. (b)The Vice-Chair shall assume the duties of the Chair in case of the Chair’s absence. (c)The Secretary shall be responsible for the minutes of the Board, keep all approved minutes in a minute book, and send out copies of minutes to all. (d) The Treasurer shall keep record of the organization’s budget and prepare financial reports as needed.
1. The Board may appoint standing and ad hoc committees as needed.
1. Regular meetings shall be held on the first Monday of the month at 9am.