Shareholders' Meeting Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Shareholders' Meeting, written in plain English, along with examples of how it is used.

What is Shareholders' Meeting?

(n) An annual general meeting or extra ordinary general meeting where in the board of directors, auditors etc are appointed, accounts and reports on the performance are announced are known as share holders meeting. This is the only occasion a share holder can interact and influence the management of a corporation

History and Meaning of Shareholders' Meeting

A shareholders' meeting is a meeting of owners or shareholders of a company. This meeting is usually held annually or at specific times during the year, where shareholders have the legal right to participate and vote on important matters concerning the company. This meeting is a legal requirement in many countries, where companies must organize an Annual General Meeting (AGM) to discuss the company's results, appoint new board members, and give shareholders an opportunity to raise questions, provide feedback, or express concerns.

Typically, a shareholders' meeting is conducted by the board of directors, who oversee and manage the company on behalf of the shareholders. The meeting agenda usually includes topics such as financial reports, executive compensation, and the appointment of auditors or officers. Shareholders also have the right to propose various resolutions, including resolutions to remove board members, change the company's articles of association, or amend the dividend policy.

Examples of Shareholders' Meeting

  1. ABC Limited has scheduled a shareholders' meeting on 22nd June 2021 to announce the company's annual results and appoint board members.
  2. During the shareholders' meeting of XYZ Corporation, shareholders questioned the board of directors about the company's strategy for the upcoming year.
  3. A resolution proposed by the shareholders was approved during the shareholders' meeting, calling for the company to reduce its carbon emissions.
  4. The shareholders' meeting of ACME Inc. was postponed due to the pandemic, and rescheduled for later in the year.
  5. The board of directors scheduled an extraordinary shareholders' meeting to discuss proposed changes to the company's business plan.

Legal Terms Similar to Shareholders' Meeting

  1. Annual General Meeting (AGM) - A mandatory meeting held each year for public companies to report on and discuss financial results, elect board members, and discuss other matters as required.
  2. Board of Directors - A governing body elected by shareholders to manage a corporation's affairs.
  3. Shareholder Resolution - A proposal made by shareholders for consideration at a company meeting, usually on a specific matter that shareholders wish to vote on.
  4. Extraordinary General Meeting - A meeting of shareholders called by the board of directors to discuss urgent or extraordinary matters that cannot wait until the next AGM.
  5. Corporate Governance - A set of guidelines and principles that determine how a company is managed and controlled. This includes matters such as the board of directors' responsibilities, shareholder rights, and transparency in financial reporting.