Openai/69435bf2-22f4-8002-922c-db7b65a3e9ed

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gpt-5-2

User: Why do most publicly traded companies have shareholder meetings after market close

Why do most publicly traded companies have shareholder meetings after market close

Assistant: Most publicly traded companies schedule shareholder annual or special meetings after market close for a few practical, …

Most publicly traded companies schedule shareholder (annual or special) meetings after market close for a few practical, legal, and investor-relations reasons:

1. Avoids market disruption

Holding the meeting after trading hours prevents:

• Sudden volatility during the session
• Mid-day price swings driven by live headlines, votes, or Q&A comments Markets can digest the information calmly and reflect it in the next trading session instead.

2. Fair disclosure (Reg FD) compliance

If material information comes up during:

• Executive remarks
• Shareholder Q&A
• Vote results After-hours timing allows companies to:
• Issue a press release
• File an 8-K
• Post materials publicly …before the market opens, reducing the risk that some investors get information earlier than others.

3. Operational convenience

• Board members, executives, and legal counsel can attend without disrupting normal business hours
• Proxy solicitors, inspectors of election, and outside advisors are more available
• Easier coordination across time zones, especially for national or global shareholder bases

4. Clear vote tabulation and disclosure

Votes on:

• Directors
• Say-on-pay
• Mergers
• Equity plans are often finalized during or immediately after the meeting. After-hours scheduling gives time to:
• Certify results
• Prepare disclosures
• Avoid releasing partial or unverified information mid-session

5. Investor access

Retail investors are more likely to:

• Attend virtually
• Watch webcasts
• Review materials after normal work hours, which improves participation and optics.

6. Legal and precedent norms

• Most proxy advisors (ISS, Glass Lewis)
• Corporate governance best practices
• Stock exchange norms implicitly assume non-trading hours for events that could affect valuation.

In short

After-market shareholder meetings reduce volatility, improve fairness, simplify compliance, and give companies time to properly disclose outcomes before the next trading day.

If you want, I can also explain:

• Why earnings calls follow the same pattern
• When companies don’t wait until after hours
• How vote outcomes typically affect stock price the next day