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Simple English definitions for legal terms
annual meeting
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A quick definition of annual meeting:
An annual meeting is a gathering of the people who own a company, called shareholders, that happens once a year. At this meeting, the shareholders vote to choose the people who will run the company, called the board of directors. They also vote to approve the company's financial statements and can talk about other important things that affect the company. Sometimes, shareholders can't go to the meeting, so they vote by proxy, which means they send in their vote ahead of time. The company has to tell everyone about the meeting and what will be voted on in a document called a proxy statement.
A more thorough explanation:
An annual meeting is a gathering of a company's shareholders that takes place once a year. The purpose of the meeting is to elect the board of directors and to vote on important matters related to the company's operations. The meeting is usually held on a specific date or according to a formula set out in the company's bylaws.
- At the annual meeting, shareholders vote on the election of the board of directors. This means that they choose who will be responsible for making important decisions about the company's future.
- Shareholders also vote on the approval of the company's financial statements. This is important because it ensures that the company is being transparent about its financial performance.
- Other matters that may be discussed and voted on at the annual meeting include changes to the company's bylaws, ratification of board actions, and requests for the board to take action if the company is underperforming.
For example, if a company is not doing well financially, shareholders may use the annual meeting to request that the board take action to improve the company's performance. This could involve making changes to the company's strategy or leadership team.