How to Have a Shareholder Meeting

Ask board members to give positive speeches about the company's financial health.

A shareholder meeting is an event that is typically held annually. It is designed to discuss business matters of the company, such as electing directors. It is required for all corporations located in the United States. Companies must plan their shareholder meetings carefully. All shareholders must be notified of the meeting.

Instructions

1. Schedule the meeting. The first step in planning a shareholder meeting is determining when the meeting will be and notifying all shareholders of the meeting. Review the statutes of the jurisdiction that governs the corporation, as well as the corporation's articles and bylaws. There are legal requirements for notifications, and every jurisdiction's requirements vary. The most common notification times give shareholders a minimum of 10 days' notice and a maximum of 60 days. In some instances, the bylaws may provide for the notice to include a proxy card. This allows shareholders to vote if they cannot make the meeting. A shareholder's meeting may be subject to cancellation if a certain number of attendees are not present. This is called a quorum, and it is a rule that requires a certain number of shareholders to be present for voting purposes. The number of the quorum varies by corporation.

2. Choose a location. Make sure that the space is large enough to hold all of the members. A large hall often works well for this type of meeting. Sometimes shareholder's meetings are longer than one day. In this case, when planning the meeting, make preparations for accommodations for the guests, and include that information in the notice.

3. Determine the agenda for the meeting. Make a list of what will be discussed and the order in which it will be talked about. Most shareholders meetings include elections for the board of directors, and a time for approving the budget for the next year. Other items for the agenda are the chairperson's speech and amounts of dividends to be paid. Include an agenda in each person's notification letter. This allows the members to be completely prepared for the discussions that will take place.

4. Ask other board members to prepare speeches. Generally, the chairperson discusses the main highlights from the previous year and also gives hope and insight for the future year. Often times, other members of the board of directors also speak to the shareholders. This meeting is a good opportunity to increase the confidence of the shareholders and to convince them that the future is bright.

5. Prepare copies of the annual report and any other handouts for the meeting. Make enough copies so that everyone receives one.

6. Invite the media. Provide the media with copies of all the handouts. Members of the media also may need space in the hall for their video cameras, if necessary.

7. Take minutes. As the meeting is happening, assign someone the responsibility of taking minutes during the entire meeting. Corporations are required by law to take minutes from all shareholder meetings held.

References

• Event Management: Annual Shareholders Meetings
• Leadership Articles; How to Conduct a Shareholder Meeting; David Gass