Traditionally, the management functions of a corporation were conducted by the corporate directors holding meetings and voting on various corporate actions and resolutions. This is one of the attributes that qualifies a corporation as a separate legal entity. In a broad sense, the terminology “corporate formalities” refers to all those actions taken by a corporation to make it a legal entity separate from the shareholders. Generally, for small corporations, the terminology refers mainly to the process of directors or shareholders holding meetings and preparing minutes of the meetings. It also refers to the steps taken to ensure the corporation operates as a separate legal entity from the individual shareholders.