California PTA Laws Practice Exam

If a corporation has one shareholder, what positions must that individual fulfill?

1. Only the position of secretary

2. President and treasurer

3. President and secretary

4. Treasurer and secretary

The correct answer is: President and treasurer

In a corporation, particularly a closely held corporation with only one shareholder, that individual is required to take on multiple positions to meet various legal and functional responsibilities within the organization. The positions typically required are that of president and secretary. The president is the primary officer responsible for the overall operation of the corporation, making key executive decisions, and representing the company in legal matters. The secretary maintains the corporate records, oversees compliance with regulatory requirements, and handles official documentation. In California, the Corporations Code allows a single individual to hold multiple officer positions within the corporation, which is why both the roles of president and secretary are necessary for a functioning organization with only one shareholder. While the treasurer position is important for handling financial matters, the critical legal requirements specifically outline the need for both a president and a secretary, thus making it essential that the single shareholder fulfills these roles.