Guidelines for Calling a Shareholder Special Meeting

The term “shareholders” refers to the people directly involved in the corporation who are participating in the company’s gains or losses. The special meeting aims to enable the shareholders to know the company’s affairs and vote on the management’s recommendations in the proposed resolution. The shareholders are equally essential in the decision-making process.

Shareholder meetings are generally held after the fiscal year-end — that is, after December 31. These meetings are held at the start of every new fiscal year. The rules regulating these meetings typically depend on the country of the company’s establishment.

If a problem cannot wait until the next annual meeting, however, then a special shareholder meeting may be necessary. This occurs relatively often, for example, when a business seeks shareholder support for a deal. The corporation will plan and manage an annual meeting at its convenience, subject to much of the same reporting conditions. Once the meeting is scheduled, the organization schedules a voting date for the meeting, which usually lasts around 30 to 90 days.

Are You Thinking About Calling a Special Shareholder Meeting?

Calling a special shareholder meeting does require certain regulations to be followed, and failing to do so can put members at risk of liability.

We would need to hire an attorney to do this for the group.