How to Hold a Board Meeting
Did you know that most corporations are required to hold annual meetings?
It's something that may be required by law for your corporation to remain in good standing. Here's what you need to know:
Do you need an annual meeting?
If your company is a C Corporation, then likely yes. Typically, LLCs are exempt from this requirement, but check with your state laws to be sure.
You'll need to check your state laws and company bylaws to determine the timing of each meeting.
Step 1. Send invites
You need to invite the entire board of directors. You'll also need to provide them with proper notice of the meeting. Your corporate bylaws will tell you whether the notice needs to be in writing and within a certain timeframe. It's also important that your company lawyer is there. She'll make sure you follow all the legal requirements and help minimize future board liability as much as possible.
Prepare important company issues to discuss and send an agenda for board members to review ahead of time.
Step 2. Have a quorum present
The board chair will start by making sure there is a quorum present. A quorum is the number of members that must be present for the meeting to begin. Typically, it's 2/3 of all board members but it can vary by your corporate bylaws.
Step 3. Start the meeting
The board will signal that the meeting has begun and ask board members to sign the attendance sheet. Board members should discuss the issues on the agenda. When decisions need to be made, the board chair will ask the members to vote. Review your bylaws to determine what number of votes are needed to approve a decisions. When all issues have been resolved, the board chair will adjourn the meting with a vote.