What Is The Checklist For Holding Annual Shareholder Meeting?

  • By: mvadmin
  • Date: January 30, 2022
  • Time to read: 3 min.

Turning your startup into an IPO is a massive step, and it shows your years of consistent efforts towards your dream. However, along with significant accomplishments comes big responsibility. In simple terms, as more people are investing their money, time, and efforts into your business, it is your responsibility to show progress.

Not only this, but holding an annual shareholder meeting is also a regulatory requirement. The meeting must also provide valuable information about the company’s affairs and the utilization of money.

That means, if it’s your first time holding a shareholder meeting, you must follow the checklist.

What is included in this checklist? Let’s’ find out!

Give A Prior Notice

According to the regulations, all the investors, officers, and employee shareholders or any other person who holds the shares of your company have the “right to disclosure” of any important news regarding the company and its assets.

In most states, you need to give at least ten days prior notice to the investors, either by mailing or in person. Nonetheless, it is better to send a written notice to avoid any dispute later on.

Also, the notice should include proper and correct information about- the date, time, location, and agenda of the meeting. In addition to this, you must also send a follow-up mail.

Sign An Attendance Sheet And Document Everything

On the meeting day, you must ask every shareholder to sign the attendance sheet, and it will act as proof of their presence during the meeting. Also, distribute an updated agenda, including the board member’s name who will be speaking.

In addition to this, you must also ensure that everything said or happened during the meeting is recorded. In short, take minutes of the meeting.

It is also advisable to conduct the meeting in the presence of a business attorney. They can state the guidelines and help resolve any issue that may arise.

Conducting The Meeting

As your meeting will include significant investors, officers, and people, you must ensure that the venue’s safety is superior. You can also hire a professional security service so that the shareholders feel comfortable and safe. Moreover, hiring security personnel will also provide executive protection and fast emergency response.

Once every shareholder arrives safely, you need to follow specific criteria to begin the meeting. Usually, the chairman of BOD (board of directors) runs the meeting by introducing the topic. Likewise, the chairman will declare the adjourned meeting when the session is concluded. Or set a date for the next meeting.

Compliance Practices And Records

Having clear records of shareholders’ meetings is a must, and it will benefit you in future mergers or acquisitions and protect you from any legal liability.

Not to forget, when you have proper documentation and the minutes of every attendee’s meeting, you will be able to protect your company from any kind of offset. So, no matter what, you must have everything on record.

To Sum It All Up!

As shareholders meeting holds great importance for entrepreneurs, you follow the above-written guidelines when holding a successful meeting. Ensure the meeting has a specific agenda, and utmost security is provided to the shareholders.

Photo by Muhammad Faiz Zulkeflee on Unsplash