How many Directors are necessary?
Generally, in most states a corporation is only required to have one director, although you can have more. Certain states base the required number of directors on the number of stockholders. If the corporation has three or more stockholders, then the corporation must have at least three directors. If the corporation has less than three stockholders, then the number of directors may be equal to or more than the number of stockholders. The states that have this rule are: CA, CO, CT, HI, LA, ME, MD, MA, MO, NY, OH, VT and UT.
Generally, in most states a corporation is only required to have one director, however you are permitted to have more. Certain states base the required number of directors on the number of stockholders. If the corporation has 3 or more stockholders, then the corporation must have at least 3 directors. If the corporation has less than 3 stockholders, then the number of directors may be equal to or more than the number of stockholders. The states which have this rule are: CA, CO, CT, HI, LA, ME, MD, MA, MO, NY, OH, VT and UT.
All states allow a corporation to have one or more directors. A few states do say that a corporation can have one director only if it has just one shareholder, but if it has two shareholders it must have at least two directors and if it has three shareholders it must have at least three directors.
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