organizations may legally conduct a remote meeting.įor most companies and nonprofits, you’re almost certainly in the clear to hold a virtual meeting when it comes to the law. Finally, every state law we examined ultimately leaves the final decision to the organization itself: Unless prohibited by the articles or bylaws of the corporation. The technology you use to communicate really can’t be subject to failure. Another interesting detail: many states have an explicit requirement for audio quality.Unless otherwise restricted by the certificate of incorporation or bylaws, members of the board of directors of any corporation, or any committee designated by the board, may participate in a meeting of such board, or committee by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting pursuant to this subsection shall constitute presence in person at the meeting. For example, if you’re incorporated in Delaware (like more than half of all publicly traded companies in the United States), then you’re in luck and the question of legality is unambiguous: First, most state laws read very similarly.Our report turned up some interesting results. This thorough examination reveals that nearly every state permits virtual attendance. We’ve put together the first comprehensive report of all state laws that govern virtual board meetings for both corporations and nonprofits. It’s important to note that the state which controls your business is where you’re incorporated, not where you have an office. Nearly every state explicitly authorizes virtual board meetings and those that don’t are silent on the subject. State law governs if and how companies and nonprofits conduct virtual board meetings. The first comprehensive report of all state laws So let’s start with a very important question – is it even legal for you to have a virtual meeting? The result: CEOs and board directors can hold virtual meetings all without ever needing to get on a plane, check into a hotel, or find a seat in an actual boardroom, Organizations have ramped up their investment in virtual meeting tools that enable leaders to connect and make decisions remotely and even while in multiple locations. We know everyone works remotely now and board meetings have gone virtual. Technology came a long way toward solving this problem even before COVID-19 and social distancing. Natural disaster, illness, or even a stalled car can lead to an unexpected absence and a failed quorum. While there’s much to be said about the value of in-person meetings, it can become impossible to gather everyone in the same room.
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