Form with which the secretary of a corporation notifies all necessary parties of the date, time, and place of the annual stockholder's meeting.
Annual Meeting Shareholders With Boss In California
State:
Multi-State
Control #:
US-0015-CR
Format:
Word;
Rich Text
Instant download
Description
Form popularity
FAQ
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.
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.
In order to have a legal meeting you must have a quorum of shareholders present. Typically, a quorum is defined as a representative of more than half of all shares outstanding. There are many other items that can be included on the agenda for an annual shareholder meeting.
In order for shareholder action taken at a meeting to be valid, four elements are required: (1) the meeting must be called; (2) the corporation must give proper notice; (3) a quorum of shares must be present at the meeting; and (4) the action must be approved by a sufficient vote.
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.
But to keep the liability shield in place, corporations must follow certain formalities—such as holding and documenting an annual meeting. Failure to hold annual meetings could allow creditors to “pierce the corporate veil” to pursue shareholders' personal assets to satisfy the business's debts.
(a) Meetings of shareholders may be held at any place within or without this state as may be stated in or fixed in ance with the bylaws. If no other place is stated or so fixed, shareholder meetings shall be held at the principal office of the corporation.
If your business is set up and registered as a Corporation, you're required by law to hold an annual shareholder meeting and to document the meeting with minutes.
9510(a): Each corporation shall keep: (1) Adequate and correct books and records of account. (2) Minutes of the proceedings of its members. board and committees of the board. (3) A record of its members giving their names and addresses and the class of membership held by each. (b) Minutes shall be kept in written form.
