A meeting of company stockholders that occurs once a year (which is what that word annual means, for those unaware). At this meeting, directors are elected and the stockholders asked to consider any significant corporate changes and vote on the issues. The company’s bylaws specify the governing rules for holding the meeting. And of course, the SEC comes into play. SEC regulations require public companies to distribute proxies and an annual report to stockholders.
Annual meetings let shareholders peek behind the curtain and feel part of a company’s process for the important decisions. In big companies, this meeting is really the only time that shareholders and executives interact. Phew. Shareholders who don’t show up the meeting still have a voice. They can usually vote by proxy online or if you’re a dinosaur, through the mail.
Exact rules for annual meetings can vary by state. Sometimes private and public companies are required to have annual meetings. There is even a mandated list of things that have to be discussed at the meeting.
You have to talk about the previous year’s meeting and agree that it did, in fact, happen.
You have to present your annual financial statements to shareholders who must give it their blessing.
Shareholders say “good job” or “bad job” to the decisions made by the board over the course of the last year.
And of course, the shareholders get to vote on the board of directors for the upcoming year.
I am not looking forward to the annual meeting. Once we get it over with and all the formalities are out of the way, I’m definitely getting a martini.