A Michigan contractor forms a corporation for liability protection. What is the required minimum number of directors for a Michigan corporation?
Correct Answer
D) 1
Michigan law requires a minimum of one director for a corporation, making it accessible for small contractors to incorporate.
Why This Is the Correct Answer
The Michigan Business Corporation Act allows a corporation to have as few as one director on its board. This reflects modern corporate law trends that make incorporation accessible to small businesses, including sole-operator contractors who want liability protection without needing to find additional board members.
Why the Other Options Are Wrong
Option A: 2
A minimum of 2 directors is not required under Michigan law. Some older state statutes required multiple directors, but Michigan's Business Corporation Act permits a single-director board.
Option B: 5
5 directors is the maximum required number in some older jurisdictions or certain nonprofit structures — not the minimum under Michigan's general corporation statute. This figure has no basis in Michigan's Business Corporation Act for standard corporations.
Option C: 3
3 directors is a common misconception, likely because some people associate corporations with a 'board' requiring multiple members. Michigan law requires only 1.
Memory Technique
One person, one corporation. In Michigan, a contractor can be the sole owner, sole officer, AND sole director all at once. Remember: minimum = 1, just like a sole proprietorship but with corporate liability protection.
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