A Look Behind The Curtain At A Shareholder Meeting
- December 05, 2019
- Doris Gray
The news often reports on the events recorded at a shareholder meeting for major companies that operate around the world and have shareholders around the globe. However, the requirement to hold a meeting for shareholders is usually in place for people across the many different small, mid, and large companies that operate across the U.S. Most state and federal regulations require a meeting to be held for shareholders no matter what size they are to allow investors to learn more about the running of each company.
A Shareholder meeting takes place on the same day each year
No law requires a meeting of shareholders to include invitations to investors because the date should be recorded in the published records of each company. Most companies do invite shareholders to their meetings to appear they are acting transparently and to avoid issues with any investor missing the meeting.
Voting for a board of directors
In many instances, the board of directors of a company is set for many years with few changes being made at the insistence of the shareholders. Each meeting requires the shareholders to vote on the makeup of a board of directors that may be made up of the investors in a small company. If a shareholder cannot attend, they will be given the option to vote by proxy, or in advance as they cannot attend. Other votes that are undertaken will usually regard the future of the company and set the path of growth and evolution the business will take in the coming year. To get daily updates, follow our Facebook page.