If you own stock, you’ve probably gotten something in the mail or by email alerting you to a shareholder meeting. But what is a shareholder meeting? Can any shareholder attend the meeting? Are you required to attend a shareholder meeting?
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Here’s what you need to know.
What is a Shareholder Meeting?
A shareholder meeting is exactly what it sounds like – a meeting of the shareholders of a given company. At least annually, publicly held companies invite their shareholders to come to a meeting to discuss and vote on matters that are important to the company. These matters can include changes in the board of directors, the intention to buy back stock, mergers or acquisitions, or other matters.
What is Discussed at a Shareholder Meeting?
The board of directors will typically provide a report on the company’s operations and financial results. The company executives will discuss the company’s strategy and future objectives.
Shareholders will have the opportunity to ask questions at the meeting. Depending on the number of shareholders in attendance, questions may need to be submitted in advance and all questions may not be answered.
Are Shareholders Required to Attend Meetings?
Every shareholder is given the opportunity to vote and attend meetings, but it’s not a requirement. Institutional investors or those with a large position in the company may attend and vote in person. Those who choose not to attend in person but still want to make their opinion known can vote by proxy.
While many individual shareholders decline to attend shareholder meetings for logistical reasons, they’re still welcome to attend. Berkshire Hathaway, for example, makes its shareholder meetings a weekend-long event, with family activities, exhibits, and even a 5K race.
As a shareholder, you are entitled to have a say in the company’s decision-making process. You can make your voice heard either in person or by your proxy vote.
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This article originally appeared on GOBankingRates.com: What is a Shareholder Meeting? Here’s What Investors Should Know and How to Attend