The general meeting is the supreme governing body of the company. The company’s shareholders have the right to appear and vote at the general meeting. The shareholders can meet in person or participate at the general meeting by means of electronic devices.
The general meeting must be held within six months after the end of each financial year. This is the annual general meeting. Every other general meeting is called extraordinary general meetings.
The annual general meeting must among other things approve the annual accounts, the annual report and distribution of dividend. Other matters are also to be dealt with here, which pursuant to law or according to the articles of association, must be decided by the general meeting.
Extraordinary general meeting
The board can summon an extraordinary general meeting if necessary. The Limited Liability Companies Act contains regulations saying that the auditor or a shareholder can demand the summoning of an extraordinary general meeting. The Limited Liability Companies Act regulates the way in which an extraordinary general meeting should be carried out, and which proceedings can or must be dealt with in this meeting.
Simplified general meeting
If none of the shareholders opposes, a case can be processed in the general meeting based on the regulations in the Limited Liability Companies Act sections 5-7 regarding simplified general meeting. A limited company can arrange a simplified general meeting when
- all shareholders are able to participate in the proceedings in an appropriate manner.
- the board members, and possibly the general manager and the auditor have the opportunity to comment on the proceedings.
A shareholder, a board member, the general manager or the auditor has the right to demand regular proceedings by the ordinary general meeting.
The minutes from the general meeting
The general meeting has to create minutes from the meeting, no matter how it is held. The minutes from the general meeting is an important piece of documentation showing the state of affairs of the company. For that reason, the document must meet certain formal requirements regarding the content and signature(s).