This post is adapted from an OnStartups.com question that I answered. The questioner wondered whether, as sole shareholder of a corporation, he needs to give himself notice of annual shareholder meetings.
Q. If I am the only shareholder in a corporation, do I have to give myself notice of annual meetings? It seems silly that I would have to notify myself, but is this required to stay legal?
A. While is certainly is possible to provide notice to yourself, there are at least two commonly-used ways to avoid that task:
- By attending the meeting (other than to object to its being held without notice), the shareholder consents to the meeting being held and waives any objection pertaining to lack of notice.
- In many closely-held corporations, shareholders dispense with the fiction of actually holding an annual meeting and, instead, prepare and sign a Unanimous Written Consent in Lieu of Annual Meeting.
Check out all posts about annual meetings.
Dana H. Shultz, Attorney at Law +1 510 547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.