How often does a Board of Directors have to meet per year?
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How often does a Board of Directors have to meet per year?
Asked on January 12, 2012 under Business Law, California
Answers:
Kenneth Avila / Kenneth Avila, Patent Attorney
Answered 12 years ago | Contributor
The general answer to your question is that the Board of Directors do not have to meet at all. Check the rules for your state to make sure. Some corporations, in place of annual meetings, will pass resolutions by mail. However it is important to note that holding regular annual meetings will lend legitimacy to the corporation and make to more difficult for creditors and tort judgment holders from suing shareholders in a "piercing the corporate veil" type of suit. Besides regular annual meetings a corporation should hold a meeting whenever an action is outside the ordinary course of business for the corporation.
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