There are a number of provisions in the bylaws that refer to the shareholders. The bylaws must specify when the shareholders will meet and how much notice the board of directors must give shareholders about the meetings. The bylaws also specify what shareholders are entitled to vote. If the bylaws do not specify a location, the statute provides that shareholders' meetings shall be held at the corporation's registered office.
Shareholders generally meet once a year to elect the corporation's directors.
The specific time is a matter of corporate convenience, but many corporations schedule their annual meeting shortly after the close of their business. This type of meeting is optional and, in most corporations, such meetings are not held because the shareholders have few powers. Also, in a small corporation where the shareholders are also the directors and officers, it would seem superfluous to convene the same group of people as shareholders when they meet regularly in their other capacities and are well aware of what is happening in the corporation. If shareholders are empowered with significant managerial duties as shareholders, it would make sense for them to meet frequently in order to exercise their powers effectively. Such a meeting may be called by the board of directors or the holders of at least one-tenth of the corporation's outstanding shares or by such other persons as are empowered to do so in the articles of incorporation or bylaws.