What Is the Proper Procedure for Calling a Meeting? - iBabs

The procedure to call a meeting should be followed closely because ... However, you should send out the agenda and board papers in good time ... WhatIstheProperProcedureforCallingaMeeting?-iBabsiBabsBlogBoardMeetingsWhatIstheProperProcedureforCallingaMeeting?Callingameetingistheactofannouncingthatitwilltakeplaceandinvitingtherelevantpartiestoattend.Theproperprocedureforcallingameetingdependsontwomainfactors: Thecompany’sarticlesofassociation.Thelawinthecountryinwhichthecompanyisbased. Althoughtherulesinthearticlesofassociationcannotcontradictthelawinthatterritory,theycanaddinextrarequirementsspecifictothatbusinessandhowitcallsbothboardmeetingsandgeneralmeetings(forshareholdersandmembers). Theactofcallingameetingalertsshareholdersorboardmemberstothefactitishappening,allowingthemtoarrangetoattendandtopreparefullybeforetheevent.Therearealsobestpracticesforcallingbothtypesofmeetingswementionedabove.You’lllearnallabouttheminthisarticle.Tableofcontentverberg1RequirementsForCallingAMeeting2TheRoleOfTheMeetingChairperson3TheRoleoftheBoardSecretary4ProcedureforCallingaMeeting4.11.UnderstandthePurposeoftheMeeting4.22.SelectingaPlace,TimeandMethodfortheMeeting4.33.PreparingtheMeetingAgenda4.44.SendingtheMeetingNotice4.55.AdjustingtheBoardPapers5TipsandBestPractices6FAQs6.1Whatisthedifferencebetweenregularandspecialnoticeoftheboardmeeting?6.2WhocancallanExtraordinaryGeneralMeeting(EGM)?6.3WhocancallanAnnualGeneralMeeting(AGM)?7Conclusion8ReferencesandFurtherReadingRequirementsForCallingAMeetingHereareexamplesoftherequirementsforcallingboardandgeneralmeetings:TypeofMeetingRequirementsforCallingtheMeetingCallingaGeneralMeetingAcompany’sboardcancallageneralmeeting,ascantheshareholders.ManybusinesseshavearequirementforregulargeneralmeetingsandAGMsintheirarticles,butothersholdthemonanadhocbasis. Theboardmustgivenoticeofthemeeting.IntheUK,theCompaniesAct2006statesthisshouldbeatleast14daysor21daysforapubliclimitedcompany(PLC).IntheUS,thestatesetstheminimumnoticeperiod,butitcanbeanythingfromtendaysto60. Thenoticeneedstoincludethedate,timeandlocationofthemeeting.Itshoulddetailwhythemeetingistakingplaceandwhatwillbediscussedontheagenda.Youshouldalsoadheretothelawandarticlesinreferencetohowtoservethenotice.Thiscouldbebypostorelectronicmeans,asperthelegalframeworkinthatcountryandthearticlesofassociation. CallingaBoardMeetingIfyouhavesetdatesforboardmeetingsinyourbylawsorarticlesofassociationandthedirectorshaveallagreedonthem,youdonotneedtogivenotice.However,youshouldsendouttheagendaandboardpapersingoodtimetoallowtheboardmemberstopreparethoroughly. Whentherearenosetdatesinthediary,youshouldgive‘reasonable’notice.Itisinthecompany’sintereststohaveallofitsdirectorsataboardmeeting,soyoushouldconsiderthiswhenschedulingandprovidingnotice. Thenoticeshouldsetoutthedate,timeandlocationofthemeeting,aswellasanyrelevantinformationsuchaswhethertheycantakepartusingboardmeetingsoftware,suchasiBabs. TheRoleOfTheMeetingChairpersonThemeetingchairpersonholdsapivotalroleincallingthemeeting.Theymustmakesurethecorrectplanningtakesplacetoensureitrunssmoothly.Thisincludesensuringtheagendaisreadyandthatthecompanyinformsthoseeligibletoattendingoodtimeandinaccordancewiththelawandthecompany’sarticles. TheRoleoftheBoardSecretaryTheboardsecretaryworkswiththechairpersononarrangingtheorderofbusinessandhowitfitsintotheagendaforthemeeting.Theyshouldalsoconfirmthebookingsforthedate,timeandlocationofthemeeting,aswellasarrangingaccommodationforanyboardmemberswhorequireit. Itiskeyfortheboardsecretarytosendthenoticeofthemeetingingoodtimeandinaccordancewiththelawinthatterritoryandthecompany’sconstitution.Theyshouldsendoutcopiesoftheagenda,previousmeetingminutesandtherelevantpapersforthenextmeeting. ProcedureforCallingaMeetingHereisastep-by-stepguidetotheprocedureforcallingameeting: 1.UnderstandthePurposeoftheMeetingThereareanumberofreasonstocallameeting.Theboardofdirectorsmaycallageneralmeetingtodiscussrelevanttopics.Shareholderscanalsorequestageneralmeetingfromtheboard.InordertosucceedunderUKlaw,thoseaskingforthemeetingshouldrepresentatleastfivepercentoftheshareholdingeligibletovoteatgeneralmeetings.Thisvariesbetweencountries. Thechairshouldcallboardmeetingstofitinwiththeschedulelaidoutinthecompany’sconstitution. 2.SelectingaPlace,TimeandMethodfortheMeetingOncesomeonecallsageneralmeeting,thesecretaryshouldensuretheyfindasuitablevenueandbookadateandtimeforthemeeting.Theeventshouldbeorganisedwithouttoomuchofadelaybutbearinginmindtheneedtogiveadequatenotice.Forboardmeetings,thisplanningmaytakeplacethepreviousyear.Thesecretarycanplanaheadandproposedatesforanentireyearsothatdirectorscancleartheirdiariesinpreparation. Forbothgeneralandboardmeetings,thereshouldbesomethoughtputintohowshareholdersand/ordirectorscantakepart.Willitbein-persononlyorcantheyattendonaconferencecall,videocallorthroughaboardmeetingportal? 3.PreparingtheMeetingAgendaThechairandthesecretaryshouldmeetupanddiscusstheagendaforthemeeting.Thisincludesapprovingtheminutesofthelastmeeting,followinguponanypreviousbusinessandthenewbusinessthatneedstobediscussed.Atightandwell-plannedagendaallowsthemeetingtoflowandcoverallthenecessarytopics. 4.SendingtheMeetingNotice Thesecretaryshouldsendoutthemeetingnoticegivingatleasttheminimumnoticerequiredbylawandthearticles.Thisshouldgotoanyonerequiredoreligibletoattend,includingshareholders,boardmembersandauditorsdependingonthetypeofmeeting. Themethodofinvitationalsodependsonthecompany’sarticles,but,ingeneral,itisacceptabletosendoutbothwrittenanddigitalnoticeofmeetings. Thenoticeshouldincludethelocation,dateandtimeofthestartofthemeeting,aswellastherelevantinformationaboutattendingbothinpersonandvirtually,aswellashowtocastaregularorproxyvote.Itshouldalsofeaturetheagendaforthemeeting,includinganyspecialresolutionstobediscussed.Forboardmeetings,youshouldsendoutboardpaperswiththeminutesofthepreviousmeetingfordirectorstostudy. 5.AdjustingtheBoardPapersIfyouarecallingaboardmeeting,youmightreceiverepliesfromboardmembersqueryingthepreviousmeeting’sminutesorwithsuggestionsforimprovingtheagenda.Afterdiscussionbetweenthechairandtheboardsecretary,youmightchoosetoadjustthepapersaccordingly. It’sworthnotingthatthisprocessismucheasierwhenyouuseboardmeetingsoftwarethanifyousendoutpapercopies.Youcansimplyupdatethedocumentsinthecloudanditrefreshesforallparties.Thereisnoneedtoreprintvasttomesandmailthemoutagain. TipsandBestPracticesGiveasmuchnoticeaspossibleoutofrespectfortheattendees.Ifyouwantasmanypeopleaspossibletotakepart,youneedtoallowthemtochangeplans,booktravelandaccommodationandpreparefullyforthemeeting. Trytomakethemeetingasaccessibleaspossible.Inmanycountries,itisnowlegallyacceptabletoholdanAGMinanonline-onlyoronline/offlinehybridmanner.Boardportalsmakethisprocesssimpleandeffectiveanditmeansthatthosewithbusyschedules,mobilityissues,wholiveoverseasorwhowouldliketoattendbutcan’tforwhateverreasoncanstilltakepart.   Forboardmeetings,trytoscheduleawholeyear’sdatestoensureyouhaveyourdirectors’timelockedinbeforetheirdiariesfillup.Thisgivesyouthebestchanceofthembeingabletoattendallofthemeetingsduringthatperiod. Beasclearaspossibleaboutthepurposeofthemeeting.Usingspecificdetailsoftheproposedresolutiontobediscussedallowsshareholderstomakeabetterjudgementoverwhethertheyneedtobethere.Ifyouarevague,theymightchangeplansandtravelacrossthecountryforameetingthatisofnointeresttothem.Youwanttoavoiddisgruntledshareholdersatallcosts. FAQsWhatisthedifferencebetweenregularandspecialnoticeoftheboardmeeting? Forregularmeetings,ifyourcompanybylawsallow,thenoticeyougivecanmerelybeastatementthattheytakeplaceatacertaintimeonacertaindayeverymonth,forexample.Itisbestpracticetosendnoticeforeverymeeting,butnotalwaysnecessary. However,forspecialmeetingswheretheremaybeurgentdiscussionsthatcan’twaitforthenextregularmeeting,proposalstochangethecompanyregulations,orsomethingelseimportant,youhavetogiveindividualnotice.Inaddition,youshouldalwayssendthefullagendaandtherecanbenodiscussionofanyothertopicduringthatmeeting.Foraregularmeeting,youcansendalessstructuredversionoftheagendaanditispossibletostrayfromitifneeded. WhocancallanExtraordinaryGeneralMeeting(EGM)?AnEGMcanbecalledbythedirectorsofacompany,holdersofsharesworthatleasttenpercentofvotingsharesoratribunal.Theseareheldtodealwithurgentmatterssuchasremovingexecutivesorotherlegalmattersthatconcernthebusiness. WhocancallanAnnualGeneralMeeting(AGM)?OnlytheboardcancalltheAGM.Itusuallyhappensonasetdayeveryyear,buttheboardcancallanAnnualGeneralMeetingonadifferentdatewith14days’notice. ConclusionTheprocedureforcallingameetingdependsonthedifferenttypesofmeetings,buttheprinciplesremainthesame.Stickwiththeguidelinesintheconstitutionandthelawsoftheland,avoidshortnoticeasmuchaspossibleandletpeopleknowwhatwillbediscussed.Thebestandmostproductivemeetingsinvolveasmanystakeholdersaspossible,sogivingeveryonethechancetomakearrangementsandresearchthemattersathandhelpsimmensely.UsingameetingportallikeiBabshelpsthingsrunsmoothlyandallowsthosewhocan’ttraveltostillplaytheirpart. ReferencesandFurtherReadingBPMeetingNoticeSampleiBabsBoardPortalShowcaseMeetingInvitationTipsWhoHasAuthoritytoCallaMeeting?GuidetoRemoteMeetingsiBabsisaleaderinpaperlessmeetingsandenablesyoutoreducethesepilesofdocumentstothethicknessofyourtablet.Thousandsoforganizationshavebeenusingthissystemformorethan15years.RecentPostsHowToChooseSoftwareForLocalGovernmentCouncilMeetings6StepsToMakeYourOnlineCityCouncilMeetingsMoreEffectiveElectronicVotingForTheBoardOfDirectors:DosandDon’tsWhatIsGoodLocalGovernanceandHowToAchieveItTheLocalGovernmentMeetingProceduresYouShouldKnowAboutBoardMeetingProtocol:Rules,Procedure,EtiquetteandMoreRobert’sRulesOfOrder:MotionsExplainedSimplyHere’sHowYouShouldWriteAChairpersonReportTheEasyWayToCreateAnExecutiveDirectorWorkPlanHowToKeepTrackOfMeetingFollow-UpActionItems+TemplatePostsbytopicBoardMeetings(18)Cases(6)Functionalities(3)General(62)Governance(3)LocalAuthoritiesandGovernments(1)Meetingtechniques(22)Meetingtrends(19)Paperlessmeetings(23)Robert’sRulesOfOrder(8)Security(4)Sustainability(3)Tools&templates(4)