Upper Darby, PA asked in Business Formation, Business Law and Civil Litigation for Pennsylvania

Q: Are non-shareholders allow to attend shareholders meeting where budgets and other pertinent information are discussed.

2 Lawyer Answers
Peter N. Munsing
Peter N. Munsing
PREMIUM
Answered
  • Wyomissing, PA
  • Licensed in Pennsylvania

A: Why would they be, if it's not open to the public? Much of that information may be gleaned from annual reports, and other public documents.

Nellie T Schulz
Nellie T Schulz
Answered
  • Philadlephia, PA
  • Licensed in Pennsylvania

A: Assuming you are talking about a business corporation, your question would be governed by the Business Corporation Law of 1988 (the “Act”), found in Title 15 Pa.C.S.A. Corporations and Unincorporated Associations § 1101, et seq. and by the corporation’s bylaws. Under § 1709 of the Act, entitled “Conduct of shareholders meeting”, it says that, except as provided in the corporation’s bylaws “only those who have received proper notice of the meeting are permitted to attend”. Certain non-members, such as the company’s General Counsel, officers and other professionals or experts who have received notice of the meeting, often attend as fact witnesses. If you are not a shareholder of the corporation or have not received formal notice of the meeting required by the Act, you have no right to attend a business corporation's shareholders meeting.

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