Golden Crowrie, Inc. has operated successfully as an S corporation for eight years in Greer, South Carolina. In July 2010, the company has 100 shareholders. Morrie Shelby is considering obtaining a divorce and both Morrie and his wife Kristy own shares in the corporation.

Morrie discusses the situation with the board of directors who offer several suggestions:

• Morrie should postpone the divorce until 2011 while the company tries to purchase all of a shareholder who owns a small ownership interest.
• Morrie and Kristy should remain married indefinitely for the good of the S election.
• Two of the unmarried shareholders will be encouraged to marry for the benefit of the company.
• The company will continue to list Morrie and Kristy as married on Form 1120S after they are divorced.
• The S election saves the group about $320,000 each year.

How would you counsel Morrie to respond to the boards proposals?