California PTA Laws Practice Exam

If a professional corporation has more than one shareholder, which officer roles must always be appointed?

1. President and secretary

2. President, vice president, secretary, and treasurer

3. Only the president

4. Treasurer and secretary

The correct answer is: President, vice president, secretary, and treasurer

In a professional corporation with multiple shareholders, it is a legal requirement to appoint specific officer roles to ensure proper governance and compliance with state laws. The roles of president, vice president, secretary, and treasurer are crucial for the operational and managerial structure of the corporation. The president typically serves as the primary officer responsible for overseeing the corporation's operations and representing it in legal matters and public affairs. The vice president provides support and can assume the president's duties when needed. The secretary has the essential role of maintaining corporate records, managing meeting minutes, and ensuring compliance with regulations regarding documentation. The treasurer is responsible for managing the financial matters of the corporation, which includes budgeting, financial reporting, and ensuring that financial practices align with legal standards. Together, these roles create a robust framework that helps the corporation operate effectively and legally, ensuring that responsibilities are distributed among the leadership team. This structure is particularly important in professional corporations, where compliance with both corporate governance and professional regulations is essential. Thus, appointing all four of these officer roles—president, vice president, secretary, and treasurer—is necessary for fulfilling these obligations.