Letters to shareholders

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Letters to shareholders

Shareholders have legal rights to information regarding their companies.

Notification of some matters is required by law or company constitutions.

Failure to notify shareholders can be legally actionable.

Letters to shareholders are required to be issued in accordance with both company law and company constitutions. The requirement for information regarding both cases is legally binding on the company as an obligation to its shareholders.

Many letters to shareholders are routine. The best and most effective format for letters to shareholders is a series of macros.

The letters must provide information in the required form.

If you are in any way unsure of the requirements, seek legal or regulatory advice.

The example below is of a common series of notifications for shareholders.

Please note: Corporate law varies quite a lot between countries, and forms of notification are also variable. The example below is intended as a general guide only.

Example
Business letterhead
Addressee

Shareholder no.
Our reference
Contacts

Dear

Notice of Annual General Meeting ABCDE Ltd

Please be advised that the company's Annual General Meeting will be held on 12th September 2010 at the Conference Hall, Blacksmith Building 101 Sweet Street, Anywhere.

A copy of the company's Annual Report is enclosed.

Other notices to shareholders

Notice is hereby given of a vote for shareholder approval of executive bonus payments at the annual general meeting above. Details of benefits proposed and Proxy forms are attached.

Notice is hereby given of a vote for shareholder approval of a special placement of stock to DEFGH Inc at the annual general meeting above. Details of this proposal and Proxy forms are attached.

Yours sincerely
Sign
Title
Date

Disclaimer

Please note:

This text is intended for advisory and guideline purposes only.

Any business letter can become a legal document, so check your content properly before issuing.

Any executable or statutorily defined document should be checked for compliance with legal requirements, and you should seek legal advice regarding its contents.

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