Shareholders of a corporation must hold shareholder meeting once a year. When more than one shareholder exists in a corporation it is important to have an agenda when calling a meeting.  A shareholder meeting agenda communicates the date and information of an upcoming meeting while the meeting minutes keep the formal record of the meeting.

Agenda

An agenda communicates the purpose and importance of the meeting and keeps everyone on tasks. Think of agenda as the schedule for the meeting. Agendas are important for important meetings like the annual shareholder meeting. The agenda should be distributed before the meeting and should include topics like:

• Election of board member by shareholders
• Election of officers
• Retainer of accountant
• Financial matters including distributions
• Officers’ salaries and bonuses
• Reimbursement of business expenses paid with personal funds
• Capital requirements and contributions
• Loans to corporation
• Large purchases and leases
• Any other important business issues

Minutes

Minutes are the official record of a formal meeting. All stockholder meetings should keep minutes. The secretary is responsible for making sure minutes are taken at the meeting. The minutes are the official record of what actually took place in the meeting. The minutes should be filed in the same manner you file important corporate documents.

Failure to hold meetings and keep minutes puts you in violation of the corporate governance formalities required by your state. Having your CPA and or legal counsel aboard is often a good idea when important issues beyond the expertise of the shareholder are to be discussed.