Why are Shareholders votes important?
(back to top) Shareholders may typically vote in person or vote by proxy. Voting by Proxy means having another person vote in the stockholder’s place. It is important to remember that Shareholders vote their shares and the number of Shares voted decides a vote As with Directors, there must also be a complete and accurate record or Minutes of a Shareholders’ Meeting. Some states allow certain actions, e.g., amending the Articles of Incorporation, to be taken without holding a Shareholders’ meeting if (1) the corporation obtains a written consent to the action from ALL the Shareholders, AND (2) the written consent states what action the Shareholders have consented to. Check with your state to find out how many Shareholders must sign a consent for it to be valid. Occasionally, there will be a combined meeting of Shareholders and Directors.
