What Is a Shareholders’ Meeting?

What Is a Shareholders’ Meeting?

By Charles Joseph | Editor, Financial Affairs
Reviewed by Corey Michael | Senior Financial Analyst

A shareholders’ meeting, also known as a general or annual general meeting, is a gathering where a company’s shareholders come together to discuss and vote on business matters. These affairs often include the election of board directors, operational issues, company projections, and major decisions affecting the overall direction of the firm. Typically held annually, these meetings provide an opportunity for shareholders to express their views and ask questions directly to the company’s board of directors and executive team.

Related Questions

1. Is attendance at a shareholders’ meeting required?

No, attendance at a shareholders’ meeting is not mandatory. However, it’s an excellent opportunity for investors to gain valuable insights and assert their influence on the company’s affairs.

2. What is the role of a shareholder?

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A shareholder is an individual or entity who owns shares in a company. Shareholders have the right to vote on major corporate actions, receive dividends, and share in the company’s profitability. Essentially, they have a financial interest in the company’s success.

3. What are proxy votes in a shareholders’ meeting?

Proxy voting allows shareholders to vote on corporate matters without attending the meeting personally. Instead, they assign their voting rights to a representative, termed as a ‘proxy.’ This could be another shareholder, a board of directors member, or any person they trust.

4. What is a special shareholders’ meeting?

These are meetings called outside of the usual annual meeting schedule. A special, or extraordinary, shareholders’ meeting is typically called to decide on urgent matters that require shareholder input before the next scheduled meeting.

5. What happens if a shareholder cannot attend the meeting?

If a shareholder cannot attend the meeting, they can opt to vote by proxy. They can designate someone else to represent them at the meeting or vote on their behalf via mail, internet, or telephone depending on the company’s arrangements.