What is a shareholders' meeting?

A shareholders’ meeting is an important part of business formation law in Massachusetts. It is a formal meeting of all of the shareholders of a corporation. At a shareholders’ meeting, the shareholders obtain and review information about the corporation, including its financial status, discuss and vote on relevant issues, and make decisions. The shareholders can also appoint directors, approve mergers and acquisitions, and receive distributions. The Massachusetts Business Corporation Act requires corporations to hold an annual meeting of shareholders, unless the corporation has fewer than seven shareholders. There are also special meetings, which may be called for specific reasons, such as to vote on major changes to the corporation. Shareholders are expected to attend the shareholders’ meeting. If a shareholder fails to attend or cannot reach a decision, they may still be able to vote via an absentee ballot. However, it is important for shareholders to actively participate in the shareholders’ meeting, as it is their opportunity to make sure the management of the corporation is acting in their best interests. Shareholders’ meetings are an important part of business formation law in Massachusetts. By attending the meetings, shareholders can stay informed of the activities of the corporation and ensure that the management is acting in the best interests of the corporation.

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What is a shareholders' meeting?

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