Shareholder Waiver Basics

Shareholders who are too busy to attend a shareholder meeting may decide to sign a waiver of notice form. Deciding not to be notified about a specific meeting may help to decrease unsolicited mail. You should sign a notice of waiver form in cases where:

  • You want to save paper.
  • You'll be out of town and would like to keep work-related notifications to a minimum.
  • You just don't want to bothered to be notified.

Even though the corporation is legally required to notify shareholders of the annual meeting, stockholders may opt out of receiving notification of the meeting by signing a waiver of notice form. Essentially, shareholders are telling the corporation that they no longer wish to be notified of future annual meetings.

How to Use a Waiver of Notice for an Annual Stockholders Meeting

Most small corporations don't bother holding annual meetings. One of the main reasons to hold an annual meeting is to appoint directors. Small corporations will most likely have low turnover; therefore, the need for an annual meeting diminishes.

Corporations that don't consistently hold annual meetings may need to hold one without notice. The waiver of notice form is needed in order to document that all stockholders agree to the actions taken during the meeting, even though they may not have been present during it.

How to Use a Waiver of Notice for a Special Stockholders Meeting

A special stockholders meeting is occasionally held, usually when the stockholders would like to terminate one of the directors sitting on the board of directors. In this type of scenario, the action taken is usually quick and aggressive.

It's important for stockholders and the board of directors to make sure that a special stockholders meeting is correctly documented in order to prevent any doubts of the legitimacy of the actions taken. It's recommended that shareholders proactively sign the waiver of notice form to protect themselves and other stockholders from actions taken during the special meeting.

How to Use a Waiver of Notice for an Annual Board of Directors Meeting

Annual stockholder meetings are primarily held to allow stockholders to vote on organizational issues and to appoint the corporation's board of directors. In larger companies, the meeting is generally the only time during the year when stockholders and executives interact. Shareholders are typically notified of the date of an annual meeting. When no notice is given, the directors may use the signed waiver of notice form to legitimize their actions and decisions during the annual meeting.

Generating the Waiver of Notice Document

 

Most directors will use the waiver of notice document during the course of administration at least once. It's important to have a template accessible and ready for use. The wording may be succinct and simple. It should include the name of the corporation, location, time, and date of the meeting.

Completing the Waiver of Notice

The board of directors should take the following actions:

  • Sign the waiver of notice forms.
  • Attach the forms to the official minutes.
  • Preserve the forms as evidence.

Though any member of the board may perform these tasks, the secretary of the board usually takes care of it. A waiver of notice is not used very often, but when it is, the signed waiver can be important.

Example of Waiver of Notice of Special Meeting

We, the Board of Directors of [ABC Company], agree and consent that a special meeting of the board will be held on the date and time and at the designated place, and do waive all notice of such meeting and of any adjournment(s).

We do consent and agree that all lawful business operations may be transacted at such a meeting or during any adjournment or adjournments as may be deemed necessary by the directors. Any business done during the meeting or at any adjournment(s) will be valid and legal and of the same impact and effect as if the meeting or adjourned meeting were held after notice.

  • Place of meeting.
  • Date of meeting.
  • Time of meeting.

Purpose of Meeting: To approve the election to be treated as a “small business corporation” for income tax purposes.

Dated:

Director(s):

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