backWe explained the basic organizational chart (in the Brazilian language “S/A”). In this publication, we will investigate some of the legal obligations of a company.
The general meeting is the company’s highest decision-making body. During the meeting, the main determinations of the company’s structure will be decided.
There are two types of general meetings, depending on the frequency of holding and the matters to be dealt with at the meeting:
Ordinary
Which are the shareholders’ councils that must take place every year between January and the end of April, to discuss and decide especially
I – Analyze the management accounts and approve the financial statements for the previous year;
II – the allocation of net income (and if there will be, how much and how the distribution of dividends will occur);
III – Elect the company’s managers.
Extraordinary
which despite the name, are not special meetings, but only the shareholders’ council whose matters for deliberation are not those provided for above. Typically, a company conducts several extraordinary meetings throughout the year.
All shareholders are entitled to participate in the meeting, even if they do not have the right to vote on the matters to be discussed. To ensure the effectiveness and validity of the meeting and to prevent any shareholder from raising the annulment of all decisions rendered at the meeting, it is necessary for the company’s management to adequately notify the entire shareholder body.
For this, shareholders must be summoned! To simplify the call procedures, we created the infographic which you can access clicking here.
Other Meetings
In addition to the general meeting, the company can (and must) promote the meeting of other interest groups of the shareholder body to resolve matters of interest to this group. Thus, there is a meeting of preferred shareholders (depending on the size of the company, there are meetings for each class of preferred shares) and meetings of debenture holders (the holders of securities issued by the company’s debt, and as with preferred shareholders, there may be different meetings for each issue of debentures).
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