Making Shareholder and Director Virtual Meetings Secure

Complying with federal securities laws, applicable state laws and traditional corporate governance practices normally results in in-person directors meetings and shareholders meetings. Such meetings have been discouraged by pandemic regulations. Suitable use of existing technologies, and amendments in entity procedures and governance documents, allow internet communications to be lawfully integrated into director meetings and shareholder meetings to overcome COVID-19 related difficulty including "social distancing" requirements and bans on large gatherings. The use of said internet communication means that cybersecurity has become an urgent concern for companies.

Shareholder meetings predominantly choose directors at their meetings. Director meetings primarily address running the firm. Shareholder meetings and director meetings each have separate meeting requirements. The internet may be used to facilitate both director and shareholder meetings exclusively held through electronic means, and without any in-person component. However, recent data breach difficulties have demonstrated that officers and directors must take commercially reasonable cybersecurity precautions, or they may be exposed to individual liability.