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A person who owns shares in a corporation is called a shareholder.
????? Shareholders: Owners of the corporation in proportion to their ownership of corporate stock outstanding. These people may be the same (ie., a director, officer and shareholder), but usually not. ????? Corporate Profits.
Among other things, Washington law gives minority shareholders the right to inspect certain corporate records. Minority shareholders also have the right to bring a suit on behalf of the company under circumstances where the controlling shareholders can't or won't bring one (a ?derivative? lawsuit).
The first shareholder meeting is an organizational meeting where shareholders ratify and approve the actions of the incorporators. Shareholders also approve shares values, appoint directors and officers if needed, and wrap up other initial tasks.
The owners of a corporation are known as shareholders or as stockholders. The owners gain ownership rights by purchasing shares of the company. In a corporation, the shareholders have limited liability meaning that they cannot be forced to settle the debts of the company using their personal assets.
A company buyback of shares is a popular route for shareholder exits. In many cases the payment on the buy back will qualify for capital treatment and taxed at lower rates of tax than dividends.
The first board of directors meeting typically covers much of the same information as the first shareholder meeting (some corporations even combine these meetings or hold them back to back). In this meeting, directors approve initial corporate documents and ensure officer roles are filled.
????? Shareholders: Owners of the corporation in proportion to their ownership of corporate stock outstanding.
The annual shareholder and director meetings are typically held after the end of the corporation's fiscal year, with more details such as time and location dictated by the corporation's bylaws. Often, the shareholders meeting and directors meeting are held back-to-back.
To form a corporation in Washington State, you must file Articles of Incorporation with the Secretary of State. This form legally incorporates your business. The following guide will walk you through the Articles of Incorporation.