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Simple English definitions for legal terms
shareholders' meeting
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A quick definition of shareholders' meeting:
A shareholders' meeting is a gathering of the people who own a company to talk about how the company is doing and to vote for who will be in charge of making decisions for the company. Shareholders usually go to the meeting in person, but they can also vote from far away. The people who run the company decide where the meeting will be held.
A more thorough explanation:
A shareholders’ meeting is a gathering of the shareholders of a company to discuss and make decisions about the company's affairs. The meeting is usually held annually and is an opportunity for shareholders to vote on important matters, such as the election of board members and major company decisions.
Shareholders are expected to attend the meeting in person, but if they are unable to do so, they may vote remotely through a proxy holder. The location of the meeting is determined by the board of directors, unless otherwise specified in the company's bylaws.
At a shareholders' meeting, the shareholders of a company may vote on whether to approve a merger with another company. The shareholders may also elect new members to the board of directors or vote on changes to the company's bylaws.
For example, if a company wants to change its bylaws to allow for more flexibility in decision-making, the shareholders would vote on whether to approve the proposed changes at the shareholders' meeting.
These examples illustrate how a shareholders' meeting is a crucial event for a company's shareholders to participate in and make important decisions about the company's future.