Most state laws do not oblige members of limited liability companies to hold meetings. However, like with other business structures, holding meetings within LLCs is crucial to keeping track of the business and avoiding possible misunderstandings and miscommunications. If meetings will be held, the requirements of the meetings should be included in the LLC’s articles of organization.
Holding meetings regularly are particularly important as it helps the members keep track of important activities like how dividends were distributed, how elections were conducted and how the members voted. The process of holding successful meetings within limited liability companies includes;
- Sending meeting notifications
The LLC is expected to send a written notice to its members, informing them of an upcoming meeting. This notification needs to be sent alongside an advance copy of the meeting’s agenda which should be in accordance with the LLC’s operating agreement. Ideally, the written notice should be sent no more than 60 days before the meeting and no less than 10 days before the meeting.
- Creating a meeting agenda
Agendas are crucial to the success of every meeting. The board of directors is therefore expected to draft an agenda containing the main items that will be discussed during the meeting and the amount of time allocated for each item. Note that a good meeting agenda for an LLC should contain basic information like the location, date, start/end time as well as the objective of each of the items listed on the agenda.
- Designate a recording secretary
For the meeting to be successful, a member needs to be assigned to act as the secretary. The secretary is expected to take down notes and document all the activities of the meeting for inclusion in the company’s records and possibly distribute them to members if required by the limited liability company’s operating agreement. The minutes taken down by the secretary should however include the following information:
- The date, time and venue of the meeting;
- The names of both the members and the guests who attended the meeting;
- The opening of the meeting;
- A copy of the president’s and treasurer’s reports;
- A copy of the committee report;
- New business ideas
- Items adjourned
- Next meeting date.
- Bring key records to the meeting
Important copies of key documents including the Articles of Incorporation, bylaws and the minutes of the previous meetings need to be brought and distributed to every member in the meeting. These documents are useful in verifying provisions during the meeting.
- Conduct the meeting according to the required rules
It is crucial to follow the agenda of the meeting carefully so that all the items listed can be deliberated upon. The meeting facilitator should be able to listen carefully to the motions of the attendees and call votes on items where the members disagree. Of course, the LLC’s rules concerning voting should always be followed.