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An annual meeting for shareholders and directors must occur at least once each year ing to California law, which requires S Corporations like yours to hold these regular meetings to keep accurate records of decisions made during business operations and activity throughout each fiscal year.
Failure to keep meeting minutes The most severe consequence is the loss of liability protection. If this happens, shareholders' personal assets may be exposed to liability for the corporation's debts.
Probably the biggest risk for failing to hold annual shareholder meetings, as with failing to follow other corporate formalities, is that your corporation's shareholders may lose limited liability protection.
Shareholder meetings are a regulatory requirement which means most public and private companies must hold them. Notification of the meeting's date and time is often accompanied by the meeting's agenda. Meetings are generally administrative sessions that follow a specific format set forth well in advance.
(c) If there is a failure to hold the annual meeting for a period of 60 days after the date designated therefor or, if no date has been designated, for a period of 15 months after the organization of the corporation or after its last annual meeting, the superior court of the proper county may summarily order a meeting ...
Corporate bylaws are legally required in Oregon. Stat. § 60.061, corporate bylaws shall be adopted by the incorporators or the corporation's board of directors. Bylaws are usually adopted by your corporation's directors at their first board meeting.