A new law makes conducting and attending New Jersey business corporation shareholder meetings even easier. Consider the following…
The evolving rule…
New Jersey business corporations (i.e., for-profit corporations) are required to conduct at least one shareholder meeting per year. For many years, shareholders were permitted to attend shareholder meetings via remote communications. During the COVID-19 pandemic, the law was revised to allow shareholder meetings to be held solely by remote communication during a state of emergency declared by the Governor. In August, the law was revised again to allow wholly remote shareholder meetings at any time. Remote meetings must be authorized by the corporation’s board of directors, and the board must adopt guidelines and procedures for governing such meetings.
Conclusion…
It’s now even easier to conduct and attend shareholder meetings. Insofar as the requirement for an annual meeting applies to all New Jersey business corporations (including, small, privately held corporations), business owners may wish to consider taking advantage of this new law. Please feel free to contact me if you would like more information about remote shareholder meetings or if you would like a copy of the new law: P.L.2021, c.202.
PLEASE NOTE: This blog is merely for the general interest of the reader. It is not legal advice or opinion and it does not create an attorney-client relationship. Please call me at 973-921-0600 if you’d like to have a free initial telephone consultation or learn more about me or my practice. Thank you.