‘Formalities’ Archive
Are there essential requirements for holding a corporate meeting?
The most essential element to insure that a meeting complies with legal requirements is proper notice to all participants. If it is a directors meeting then there must be notice to all directors. If it’s a shareholders meeting, notice must be given to all shareholders. The bylaws of a corporation usually set out the specific » Continue…
Are corporate meetings required?
The corporation laws in most states provide that a corporation shall hold an annual shareholders meeting. However, failure to hold an annual meeting does not invalidate corporate actions or business. In fact, there appears to be no real penalty for the failure to hold an annual meeting. Beyond requiring an annual meeting, the corporation laws » Continue…
What are “corporate formalities” and are they necessary?
Traditionally, the management functions of a corporation were conducted by the corporate directors holding meetings and voting on various corporate actions and resolutions. This is one of the attributes that qualified a corporation as a separate legal entity. In a broad sense, the terminology “corporate formalities” refers to all of those actions taken by a » Continue…
