Understanding Court Ordered Meeting (Corporate Law): Key Insights and Definitions

Definition & Meaning

A court ordered meeting is a gathering of shareholders mandated by a court when certain conditions are not met within a corporation. This can occur if an annual meeting has not been held within a 13-month period or if a special meeting requested by shareholders is not convened within a specified timeframe. The court has the authority to set the meeting's time, location, and agenda, ensuring that shareholders can participate and vote on important corporate matters.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A shareholder of a corporation applies to the court for a meeting because the annual meeting has not occurred for over 14 months. The court orders the meeting to be held within a specified timeframe.

Example 2: A group of shareholders demands a special meeting to discuss urgent corporate matters. When the corporation fails to notify them within 60 days, they seek a court order to compel the meeting (hypothetical example).

State-by-state differences

State Key Differences
Florida Allows court ordered meetings under specific conditions as outlined in state statutes.
Delaware Has similar provisions but may differ in the required notice periods and procedures.
California Requires different thresholds for shareholder applications to the court for meetings.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Annual Meeting A regularly scheduled meeting for shareholders to discuss corporate matters. Annual meetings are scheduled by the corporation, while court ordered meetings are mandated by a court.
Special Meeting A meeting called to address specific issues outside of the annual meeting. Special meetings can be requested by shareholders, whereas court ordered meetings arise from legal action when such requests are ignored.

What to do if this term applies to you

If you believe a court ordered meeting is necessary, consider the following steps:

  • Review your corporation's bylaws and state laws regarding shareholder meetings.
  • Gather support from other shareholders if possible.
  • Consult a legal professional to assist with the application process to the court.
  • Explore US Legal Forms for templates that may help you draft necessary documents.

Quick facts

  • Typical Fees: Varies by state and court.
  • Jurisdiction: Circuit court of the county where the corporation's principal office is located.
  • Possible Penalties: Non-compliance with court orders may lead to legal repercussions for the corporation.

Key takeaways

Frequently asked questions

A court ordered meeting is a shareholder meeting mandated by a court due to the failure to hold required meetings as per corporate law.