Form with which the stockholders of a corporation record the contents of their annual meeting.
Stockholder Meeting For Private Companies In North Carolina
State:
Multi-State
Control #:
US-0009-CR
Format:
Word;
Rich Text
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FAQ
All shareholders must be notified of the format, date, time, and place of the meeting. How far in advance notices should be distributed may depend on your state, but generally, they should be sent out more than 10 days prior to the meeting, but less than 60 days.
Annual shareholder meetings are necessary but they can be costly, ill-attended and often do not add value other than their vital purpose under corporate law.
Annual General Meeting (AGM) During these meetings, corporate board members present annual financial reports and accounts to be ratified by shareholders. Shareholders can also question board decisions and vote on the appointment, election, or removal of company directors.
A General Meeting is simply a meeting of shareholders and 21 days' notice must be given to shareholders, but this can be reduced to 14 days, or increased to 28 days, in certain situations.
AGMs are mandatory for both public and private companies. All shareholders are legally obligated to receive an invitation to these meetings. The board of directors should also be represented. An auditor may also be present if the organization is subject to an audit requirement.
California law requires ALL California corporations, even those owned by a single shareholder, to hold an annual meeting of the shareholder(s) for the purpose of electing the board of directors.
In the case of a private company regardless of the number of members, two members must be present for the quorum to be met for a meeting.
Federal and state-level laws, as well as a company's incorporation documents, require public and private corporations—including C-corps—to have boards of directors (BoDs). Companies that are formed as LLCs (limited liability companies) do not have the same requirements, although some still choose to assemble a board.