Traditional concepts applicable to large publicly held corporations often do not meet the needs of closely held ones. Accordingly, the RMBCA addresses these needs. Under the RMBCA,
A. A qualifying entity is automatically treated as a close corporation if it has fewer than 50 shareholders.
B. A shareholder may have power to dissolve a close corporation that is similar to a partner's.
C. Transfer of shares of a close corporation is restricted by means of a statutory buy-and-sell arrangement.
D. A board of directors is required for a close corporation but shareholders have absolute power to restrict its discretion.
Answer: B. A shareholder may have power to dissolve a close corporation that is similar to a partner's.
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