The South Carolina Statutory Close Corporations Supplement states that a business’s shareholder that fails to observe formalities required by corporations in the management of the business do not lose their limited liability status. A South Carolina close corporation also eliminates many of the formalities required by corporations. For instance:
South Carolina close corporations are additionally not required to adopt bylaws as long as the provisions required by law to be contained in the bylaws (e.g. number of directors, notice of director’s meetings, authority of officers) are included in the articles of incorporation or the shareholder agreement. These type of corporations are also not required to hold annual shareholder meetings unless a shareholder delivers written notice requesting a meeting at least 30 days before the proposed meeting.