Call of Special Stockholders' Meeting By Board of Directors of Corporation
Description Call Stockholders Meeting
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Special Meeting Board Directors Form popularity
Special Meeting Directors Other Form Names
FAQ
Investors must call a special shareholder meeting for a specific reason. Most of the time it involves electing directors that will support the investor case for change.
(1) The board of a company, or any other person specified in the company's Memorandum of Incorporation or rules, may call a shareholders meeting at any time.
A special shareholder meeting is sometimes called to handle issues that occur in between annual meetings, and often have certain requirements for calling and holding the meeting.A shareholder meeting will often be called when shareholder input is needed in a major decision, such as a change in directors.
A similar power exists for shareholders to call and hold a meeting. Section 249F of the Corporations Act provides that members with at least 5% of the votes that may be cast at a general meeting may call, and arrange to hold a general meeting.
If the board then fails to comply within 21 days, shareholders can go ahead and call the meeting themselves.Many private companies with a small number of shareholders will have no need to hold general meetings - where a shareholder vote is needed, a written resolution can be used (see below).
Step 2: Publicize the Details. Usually, the call to meeting must be issued by a specific officer (often the president) and sometimes requires the approval of the board. Some organizations allow a set number of members to submit a written request that requires the president to call a special meeting.
If the special meeting is an executive or emergency meeting, notice requirements are different. Calling the Meeting. Unless otherwise provided in the articles or bylaws, board meetings may be called by the president or any vice president or the secretary or any two directors.
