Issuer Consulting Blog

Do you have an annual shareholder meeting coming up? If so, you need to place this meeting in the best position possible to be successful. Unfortunately, there are a lot of common mistakes that companies make at an annual shareholder meeting. What are a few common mistakes people make at a shareholders’ meeting, and how can you avoid them? Learn more below.

What Is an Annual Shareholder Meeting?

An annual shareholder meeting is a meeting that involves the general shareholders of a company or organization. There are some situations where this meeting could be required by law. Shareholders who have voting rights will exercise them on current issues. This could include appointments to the board of directors, dividend payments, executive compensation, and even the selection of auditors. The exact tasks of a shareholder meeting can vary from company to company, but you need to have a reliable service that can streamline the meeting for you. That way, everyone knows what’s going on, and the shareholders have a lot of confidence in the operations of the company. This could be a way for you to attract more investors as well.

22 Different Ways To Fail in Your Annual Shareholder Meeting

There are a lot of common mistakes that companies make in an annual shareholder meeting. A few common examples include:

1. Not hiring a transfer agent to oversee the mailing of notices for the meeting and tabulation
2. Not using an online voting platform to make voting easy for shareholders
3. Not complying with SEC date planning rules and Notice and Access
4. Not testing the videoconferencing or audio equipment ahead of time to make sure it is working
5. Avoiding certain portions of the proxy statement and annual meeting materials because they might make the company look bad
6. Holding a secret meeting ahead of time when we know certain shareholders are not going to be happy
7. Not checking the internet connection to ensure the connection is solid
8. Not giving shareholders enough notice before the meeting
9. Allowing meetings to go on for hours on end
10. Having meeting minutes that do not cover enough of the information from the meeting
11. Not providing a company presentation to existing investors to help nurture their interests and investments in the company
12. Not clearly explaining to voters what they are voting on and why it matters
13. Not having a way to clearly track the attendance at the meeting
14. Not thinking about the priorities of the shareholders who come to the meeting
15. Not bringing a draft of the budget to the meeting
16. Not having attorneys review all drafted documents
17. Not putting together a script for everyone to follow
18. Not defining the roles and responsibilities of the people involved in planning the meeting
19. Overpromising to shareholders, event organizers, and the staff members
20. Not anticipating questions that could come from the crowd
21. Not giving those in attendance a schedule of how the meeting the going to unfold
22. Not shaking things up from time to time in an effort to increase attendance at the meeting

You need to think about these mistakes because they could reflect poorly on the company. Some of these mistakes could even be violations of certain regulations that could open the company to potential fines and sanctions. If you would like to avoid these serious missteps, you should work with a professional service that can help you. That is where our team can assist you.

Maximize Your Annual Shareholder Meeting with Colonial’s Shareholder Meeting Services

Even though there are a lot of mistakes people make at an annual shareholder meeting, it is possible for you to avoid them. At Colonial, we offer professional shareholders meeting services that can help you streamline the meeting. We can make sure you have proper security, everyone is aware of the schedule, and that all the equipment you need to run the meeting is intact. Allow us to help you with your annual shareholder meeting. Give us a call today to learn more about our services! It would be our honor to assist you with your upcoming shareholder meeting.