Annual Shareholder Meeting for Your Michigan Corporation
Every year the shareholders of a corporation should meet to discuss the needs and future of their company. The shareholders should set aside time to discuss the progress and challenges of the previous year and, most importantly, elect the directors of the corporation. Our free annual shareholder meeting minutes template provides all the basics to conduct your business correctly.
Do You Need Annual Shareholder Meeting Minutes?
No, but we strongly recommend keeping minutes. Annual shareholder meetings are a big deal if for no reason other than the directors’ election. The most important decision shareholders will make each year is the election of directors, which typically takes place during the annual shareholder meeting. Usually, directors are elected to one-year terms and will, in turn, appoint officers to run the day-to-day operations of the corporation. Having a written record of information shared is always a good idea, especially when it involves leadership changes and election tallies.
What Should be Included in the Annual Shareholder Meeting Minutes Template?
However you structure your annual shareholder meeting minutes, it’s a good idea to have some basics covered, which is why we provide you with a free template.
But if you want to create your minutes from scratch, here are some of the basics you’ll want to include:
General Meeting Information
You’ll want to cover the who, what, when, and where of the meeting by noting the location, those in attendance, and date.
Chairperson and Secretary Elections
At the start of the meeting, members will elect these two positions. The chairperson runs the meeting while the secretary records the minutes.
Before the meeting can begin, the chairperson will confirm there are enough members in attendance.
Review of Previous Minutes and Records
Many meetings begin with “past business” so everyone is up to speed on the status of the company and can make informed decisions.
Like any open and fair election, you’ll want to record the names of those running and the number of votes they receive. Additionally, the compensation for each director should be clearly stated.
The president and financial officer should have reports on the company and the financial health of the company, respectively. The finances should show the gross receipts, gross profits, and net profits from the previous year.
Other Items of Business
This is an opportunity for anyone to bring up a pressing matter that didn’t fit into the above categories. While it seems insignificant, it’s always smart to give everyone a chance to bring up additional business.
Make it official! The secretary should sign and date the minutes as well as a couple of witnesses for good measure.
Why do we care about meeting minutes?
Maintaining a well-oiled corporation means attention to detail. Being too relaxed about the little things—meeting minutes and documenting agreements—can result in disputes or, in the most extreme cases, lawsuits or business dissolution. Taking a few minutes to develop a paper trail provides clarity for you and all involved.
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