These are very important events for shareholders for both listed and unlisted companies. Corporations everywhere on the world hold annual meetings and there are purposes for these meetings. The focus of these meetings is the election of the Board of Directors; those that make most of the decisions of the corporation.
The annual meeting is the shareholder’s chance to review annual reports, which includes information on the financial well-being of the company, whether there has been gains or losses.
For some companies, shareholders are allowed to vote on certain issues besides the Board of Directors. Few of those issues include acquisitions of other companies and investments. The shareholders will also be introduced to the new products or services that the business will launch the following year.
Planning of Shareholder Meetings
To plan these meetings, many corporations have meeting planners or they allow their marketing department to plan these events. Although often the planning is outsources to a professional event planning company. One of the things to consider when planning annual meetings is the corporate climate. The corporate climate can affect the planning aspect of the meeting.
If the annual meeting is for a conservative company, it might consist of sitting in a conventional hall to vote on corporate matters. Afterwards there is usually a formal dinner with a guest speaker. For some companies, they create a vibrant and rock-n-roll atmosphere, with sometimes even a band and the attire will be casual. The annual meeting of a company like Microsoft will be different from the meeting of a company like Victoria’s Secret.
Though it may not be popular in this economic climate, some corporations host their annual meetings in exotic locations like The Bahamas. This is a chance for the shareholders to vote on important business and at the same time be on vacation. Although most companies hold their annual meetings in the city their corporate office is located in.
Some of the meetings are held over the course of several days, over the weekend or just on one day. The duration of these meetings will determine the food options, accommodations and other details.
If you are planning an annual meeting, you must know who is compiling the annual report. Some corporations seek planners that have marketing department which write annual reports. If you are the planner and it is not you who is writing the report, make sure you know who is. This is because you will need to ensure that there are enough copies available for all attendees (shareholders and the media).
For large corporations, the press usually has an interest in the annual meetings. If media coverage is expected, as the planner you must know what type of media coverage is expected and whether there is a need to set up a section for the press. For small corporations, instead of inviting the press they usually send press release about the highlights of the annual report and the new board of directors.
If there will be bad news revealed at the meeting, you as the meeting planner should be privy to the news and considerate. Do not plan for a fancy black-tie event with expensive trimmings if the company’s profits have plummeted last year. It is very likely that the shareholders will consider the event to be a waste of money if the event is extravagant. However, a grand party will be in order if there is a cause to celebrate.
Some corporations choose to hold virtual annual meetings with the aim to save money. Though it may seem like the only planning that goes towards a virtual annual meeting is making sure everyone is online at the same time, which is not the only thing that needs to be done. A secure connection must be arranged for the meeting. There are sites that offer virtual conferencing for free and votes can also be done virtually.