Texas Call of Special Stockholders' Meeting By President of Corporation

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Generally, if a stockholders' meeting is not called by a person or a group authorized to call such a meeting, the proceedings and decisions which occur at such a meeting will be of no effect. The board of directors is usually considered to be the appropriate body to call stockholders' meetings. Some state statutes allow the stockholders themselves to call a meeting without resort to the courts when corporate management has improperly failed or refused to call a meeting. Unless there is special authorization in the charter or bylaws, a corporate officer, such as the president of the corporation, is not considered a person authorized to call a stockholders' meeting on his or her own authority.

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FAQ

Typically either the president or a majority vote of the board (or both) can call a special meeting. You need to give proper notice to members and, of course, you need a quorum to do business. The procedure should be spelled out in your bylaws.

Shareholder meetings are a regulatory requirement which means most public and private companies must hold them. Notification of the meeting's date and time is often accompanied by the meeting's agenda. Meetings are generally administrative sessions that follow a specific format set forth well in advance.

The corporation can allow others to call a special meeting, such as the BoD Chair, CEO, or yes, shareholders.

Every corporation needs bylaws to outline the corporate structure and establish the powers of directors, officers, and shareholders. Nolo offers an online form you can use to create customized bylaws for your corporation. You can learn more about bylaws in the Corporations section of Nolo's website.

Annual general meetings (AGMs) are important for the transparency they provide, the ability to include shareholders, as well as bringing management to accountability.

Special meetings of the shareholders may be called for any purpose or purposes, at any time, by the Chief Executive Officer; by the Chief Financial Officer; by the Board or any two or more members thereof; or by one or more shareholders holding not less than 10% of the voting power of all shares of the corporation

Most special meetings involve director elections, which typically work pursuant to a less-restrictive plurality standard, rather than a majority standard.

Scheduled meetings Your business should hold at least one annual shareholders' meeting. You can have more than one per year, but one per year is often the required minimum. An annual board of directors meeting is often also held in conjunction with the shareholders' meeting as well.

Under section 61 of the Companies Act 71 of 2008 (Companies Act), only the board of a company, or any other person specified in the company's Memorandum of Incorporation (MOI) or rules, has the power to call a shareholders' meeting.

Who can call the meeting? An AGM can be called by two or more members who own at least 10% of the company's share capital.

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Texas Call of Special Stockholders' Meeting By President of Corporation