Glossary: Consent of the Sole Shareholder in lieu of Annual Meeting or Special Meeting

Consent of the Sole Shareholder in lieu of Annual Meeting or Special Meeting

Consent of the Sole Shareholder in lieu of Meeting or Consent of the Sole Shareholder in lieu of Annual Meeting or Consent of the Sole Shareholder in lieu of Special Meeting - Many small privately held corporations have only one shareholder who is also running the company full-time as its President, Secretary and sole Director. It makes no sense to hold a meeting attended by only one person. What does make sense is for this sole shareholder to consent in writing to adopt a resolution than to hold an annual or special shareholder's meeting. If your corporation has only one shareholder, then you should prepare a written consent of the sole shareholder to formally evidence the approval the corporate actions. Therefore, the laws of most states allow resolutions of the sole shareholder to be adopted through the written consent of the sole shareholder instead of an annual or special meeting. A written consent in lieu of a meeting of the sole shareholder must be signed by the sole shareholders. This written consent must be delivered to your corporate Secretary who will include it in the corporate minute book.

Disclaimer: The foregoing is intended to provide general information and may not be suitable in specific instances. The glossary information is not intended to be exhaustive, but rather to illustrate typical considerations. The material is provided with the understanding that it is not legal, accounting, tax or any other professional advice.

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