How to hold a shareholders meeting

The joint-stock company is obliged to hold a general meeting of shareholders annually. The annual general meeting is held within the time stipulated by the charter of the company, but not earlier than two months after the end of the financial year and no later than six months. Proper preparation and holding of a meeting of shareholders is one of the most difficult events in the life of a joint stock company.

You will need

Federal Law "On Joint Stock Companies"

Instruction manual

1

If you do not have experience in preparing a meeting of shareholders, then it is unlikely that sooner or later you will be able to avoid certain unpleasant surprises. What significant points can overshadow the life of the organizer and leader of society? Firstly, the illiterate organization of a meeting of shareholders may result in shareholders submitting claims for violation of the procedure for holding this event.

2

Incorrect preparation of documents leads to the so-called decision failure. One of the worst consequences of illiterate preparatory work and organizational failures is the takeover of the enterprise.

3

It should be remembered that at the general meeting of shareholders of the company extremely important issues of its activity are resolved, for example, election of the board of directors and the supervisory board, election of the audit committee, approval of the auditor. Thus, the general meeting is the supreme governing body of the joint-stock company.

4

Each shareholder has the right to participate in such a meeting with the right to vote on all matters within its competence. The specific competence framework of the general meeting of shareholders is determined and limited by the Federal Law "On Joint-Stock Companies".

5

Particular attention in the preparation of the annual meeting of shareholders should be paid to the approval of the company's annual reports, financial statements, especially profit and loss statements. Perhaps one of the main points that matter to each shareholder is the question of the distribution of profits, including the payment of dividends for the financial year.

6

Those general meetings, which are held separately and regardless of the annual, are considered extraordinary.

7

The specific features of the preparation and holding of such a crucial event as the general meeting of a joint-stock company depend on many factors, including the number of shareholders and their qualitative distribution. For full confidence that the meeting will be held at a high level and in full compliance with formal procedures, the head of the company should contact professional lawyers. The law firm will help to prepare a package of documents, will assist in drawing up the minutes of the meeting of the Board of Directors on the convening of the meeting, extracts from the register of shareholders and other business papers, without which the meeting may be invalidated.

Useful advice

Additional source:

Federal Law of December 26, 1995 No. 208-FZ "On Joint-Stock Companies"

Preparation and holding of general meetings of shareholders