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Business & farm
it would be impossible for a US corporation to not have any voting shares. the reason is that
Voting shares are shares that give the stockholder the right to vote on matters of corporate policymaking. Owning voting shares also allows a vote on who should be on the company’s board of directors. The BOD elects the officers.
so no voting shares no policy decisions could be made, this would include making the s corp election since there could be no officer to sign the election. no board of directors could be elected (usually required by state law) even if there is only one person and no officers which a corporation must have based on state law.
that doesn't mean an s-corp can't have non-voting stock only that there must be voting stock.
April 8, 2021
12:44 PM
1,945 Views