Corporate Updates

The purpose behind incorporating a business is normally to limit the liability of the owners of the business.  Once an owner transfers the assets of a business to a corporation, he or she becomes a shareholder of the corporation.  California Corporations Code Section 600(b) requires each California corporation have an annual meeting of the shareholders.  The purpose of this meeting is normally to elect the board of directors and any other matters deemed relevant to the shareholders. 

Annual meetings are one way the shareholders of a corporation can protect themselves from personal liability in the event of a lawsuit against the corporation, because the corporation is acting as an entity separate and distinct from the shareholders; thus mitigating any attempts to "pierce the corporate veil."  Tredway, Lumsdaine & Doyle keeps a record of the date of annual meetings of the shareholders for each corporation, sends reminders to have the annual meeting, and will prepare minutes of meetings for execution by the shareholders. 

Be sure to speak with your corporate attorney for advice and guidance in drafting and executing shareholder minutes. 

Article Submitted By: Attorney Brooke M. Pollard