Corporate Governance is the way in which corporations are controlled and directed and hence is very important for companies in which multiple shareholders are involved. It is important to understand that shareholders have the ultimate legal control over management of the company.
A Proactibutors consultant (or consultants in some cases) will never take up any form of directorial roles in any companies we consult. The other Co-CEO, any suitable shareholder or external proxy advisors can be appointed as directors. However, our consultants, due to the pivotal role they play, naturally are part of all meetings and serve as advisers.
It is important to understand the difference between shareholder meetings (e.g. annual general meeting) and board of directors meetings.
Annual General Meetings of all shareholders may be held as best practice, even if certain rules exempt such requirements. Electronic participation via video conference is allowed as per rules for meetings and electronic voting can also take place in matters of concern. An Extra-Ordinary General meeting maybe convened for transacting special or urgent business. Shareholders do not bear burden of responsibilities (and it is not compulsory to attend meetings too) but it is advisable that they remain aware of what is happening to their investments and should remain aware of its financials. Annual General Meetings provide shareholders with an opportunity to collectively discuss the affairs of the company and to exercise their ultimate control over the management of the company. Anybody who wishes to learn more of what rights they can implement as shareholders or directors can access the resources given in links below: