“Shareholder action by written consent refers to corporate shareholders’ right to act by written consent instead of a meeting. This type of consent avoids some of the negative characteristics of shareholder meetings. A consent resolution, formally called a Shareholders’ Consent to Action Without Meeting, is a written document that details and validates the procedures taken by shareholders within a corporation without requiring that a meeting occur between shareholders and/or directors.
In general, written shareholder consents require the same number of approval votes as would be required if the shareholder meeting actually occurred. Keep in mind that it’s not necessary for a meeting to actually be in person these days either, as telephone and video meetings are common and may be included as acceptable methods of holding meetings according to a corporation’s bylaws.
Shareholder action by written consent is also known as:
- Shareholders’ Consent to Action Without Meeting.
- Notice of Action by Written Consent.
- Shareholders’ Written Consent to Action.
- Action by Unanimous Written Consent.”