To Prevent a Majority Shareholder from Dominating the Management and Operation

Multiple Choice

To prevent a majority shareholder from dominating the management and operation of a close corporation, the firm should

A) require more than a majority of directors approve any board action.
B) restrict the transferability of shares to outside persons.
C) reorganize into a sole proprietorship or partnership.
D) hold special shareholders' or directors' meetings on an annual basis.