Most people know they need to hold an Annual Meeting for their Company. But do you know what needs to go into your Annual Meeting and how to prepare for it? This article will outline key elements of annual meeting preparation.
1. When to hold the Annual Meeting.
Your Company is governed by your Operating Agreement or Bylaws. In the Agreement you can find a clear statement of when your Annual Meeting should be held. (If you don’t have an Agreement for your company, make sure you get one done.) The Agreement will contain a paragraph entitled “Annual Meetings” or “Meetings of the Members.”
2. Who Should Attend the Annual Meeting?
For a LLC, your meeting should include all of the Members. For a Limited Partnership, it should include all the General Partners. A corporation must have two meetings: the first for the Shareholders (all persons who own stock in the Corporation); the second for the Directors. If a member, director or general partner cannot attend the meeting, you must have a majority present. This will be outlined in your Operating Agreement.
3. Notice of the Meeting.
Notice of the Annual Meeting must be given no less than 3 days and no more than 50 days prior to the meeting to all Members, Directors, Stockholders, or General Partners of the Company. Your Operating Agreement should provide the time for sending notice. As an alternative to this Notice of Meeting, most Operating Agreements have an option to sign a waiver instead. Waivers can be signed the same day as the meeting.
4. Documenting the Annual Meeting.
It is imperative that you include all the minimum requirements of an Annual Meeting in your Minutes. You will need to identify the company, the date, time and place of the meeting, who was present, who chaired the meeting and who served as secretary. You must also obtain the required signatures.
5. How to apply a business trip toward your Annual Meeting.
Taking a business trip for your Annual Meeting is really quite simple. When you are taking a trip during the time frame that your Annual Meeting should be held, use that trip as the date and place in your Annual Meeting Minutes. Most people will use a trip that falls into the five-month period of time for their annual meeting.
6. Finalizing Your Annual Meeting.
Once you hold your Annual Meeting, draw up the Annual Minutes. The minutes must be signed and placed in your Company Minute Book.
Copyright (c) 2007 Juli Walsh