Celebrating 22 years in Legal Practice
Stay connected with Navado:

Legal > Business & Commercial Law

Shareholders’ Meeting:

Overview FAQs Articles Locations

A shareholders meeting is a meeting, of all shareholders of a corporation to elect the Board of Directors and hear reports on the company's business situation. In larger corporations top management people hold the proxies signed over to them by many of the shareholders' to vote for them rather than attend themselves. The attendees are persons who have purchased shares in a corporation. The meeting is usually scheduled around the public release of the annual financial statements. It provides an opportunity for shareholders to vote on key issues, such as the direction of the company, the decisions made over the last year and the financial results. Obtaining professional legal advice from a Commercial Lawyer may be greatly beneficial if you are a shareholder and are involved in a shareholders’ meeting.

Shareholders' meetings are required as part of the articles of incorporation and there are a series of laws and routine requirements surrounding the timing, subjects and structure of this meeting. By law, shareholders must approve of any merger or restructuring of the corporation, changes to the articles of incorporation, amendments to the bylaws, sales or transfers of assets, use of stock option plans, issuing of securities and the dissolution of the corporation. Proper legal advice in from a Commercial Lawyer may be of great assistance in this regard.

The attendees at a shareholder's meeting may also include representatives from investment firms, banks and pension funds that own large number of shares, as well as private investors. These professionals are well-informed on the issues at hand, the significance of the requests and the details of the financial statements. Individuals who hold a minimal number of shares rarely attend these meeting and instead submit a shareholder proxy form before the shareholder's meeting. Sound legal advice from a skilled Commercial Lawyer may be advantageous to ensure thorough understanding of Shareholder meetings.

A shareholder proxy form allows a shareholder to give permission for another party to vote on their behalf. If no specific shareholder is named, a default proxy is appointed, normally the chairman/woman of the meeting. On the form is a list of the items to be voted on and a space for the shareholder to indicate their vote. The proxy is responsible for collecting these forms and casting their votes on behalf of the absent shareholders during the shareholder's meeting. Obtaining professional legal advice from a Commercial Lawyer may be greatly beneficial in this respect.

In order for a motion to be passed, a quorum must be present. A quorum is a predetermined number of shares that must pass a motion before it can be accepted for instance 75% of shareholders. This value of shares may be represented by a large number of people, or several companies. The number of shares for a quorum is based on the total number of shares issued and the number outstanding. A quorum vote must represent the wishes of the majority of voting shares. The value of the quorum required to pass a motion can be set based on each issue, with more significant issues requiring a larger supporting vote from shareholders. Sound legal advice from a skilled Commercial Lawyer may be advantageous to ensure thorough understanding of shareholders’ meetings.

Meeting minutes must be taken at shareholder's meeting and distributed to all shareholders with a set time period after the meeting. A shareholder's meeting provides an opportunity for investors to hear about the plans of the corporate executive for the next year and the explanations behind any financial losses or missteps.

Minority shareholders can achieve a disproportionate amount of influence over corporate executives through active participation in shareholder's meetings. Educated investors who challenge the claims of the company and illustrate a focus on a particular issue or cause can have deep impact. For the above reasons it is important that shareholders have a thorough understanding of shareholders’ meetings.

If you would like further information or wish to discuss your shareholder meeting matter with us please do not hesitate to contact us by telephone on (02) 9233 4048 or by email to info@navado.com.au. 

 

Bookmark and Share

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.

Sorry, but no Articles are available at this time.

Sorry, but no FAQs are available at this time.

If you require assistance with a matter, you should make an appointment to see one of our Lawyers in one of the following locations:

  • Sydney

Our Locations

  • Business Lawyer Sydney
  • Commercial Lawyer Sydney
  • Business Lawyer Parramatta
  • Commercial Lawyer Parramatta
  • Business Lawyer North Sydney
  • Commercial Lawyer North Sydney
  • Business Lawyer Rockdale
  • Commercial Lawyer Rockdale
  • Business Lawyer Liverpool
  • Commercial Lawyer Liverpool
  • Business Lawyer Gordon
  • Commercial Lawyer Gordon
  • Business Lawyer Baulkham Hills
  • Commercial Lawyer Baulkham Hills
  • Business Lawyer Campbelltown
  • Commercial Lawyer Campbelltown
  • Business Lawyer Bondi Junction
  • Commercial Lawyer Bondi Junction
  • Business Lawyer Chatswood
  • Commercial Lawyer Chatswood
  • Business Lawyer Miranda
  • Commercial Lawyer Miranda
  • Business Lawyer Bella Vista
  • Commercial Lawyer Bella Vista
  • Business Lawyer Erina
  • Commercial Lawyer Erina
Quick enquiry
  • Request an appointment
Stay connected
Ask an expert