Shareholder Meeting

• The shareholders are the owners of the corporation. By law, every corporation must have at least one annual meeting of the shareholders. The main purpose of the annual meeting is the election of Directors for appointment to the corporations Board. The Board of Directors may call for additional "special" shareholder meetings whenever there is an important corporate item that requires shareholder approval.
  
  

Board of Directors Meeting

• Members of the Board of Directors are elected by the shareholders to manage the corporation on behalf of the shareholders. At its meetings, the Board of Directors makes major decisions regarding the running of the corporation including the establishment of bylaws, the issuance of dividends, and the approval of mergers.
  
  

Further Considerations

• Both meetings of the Board of Directors and meetings of the shareholders must be recorded, and meeting minutes produced for every meeting. While the shareholders ultimately have the final say over corporate decisions, the actual day-to-day operations of the corporation are managed by corporate officers selected by the Board of Directors.