DEFINITION of 'Information Circular'

A document sent to shareholders outlining important matters to be discussed at the annual shareholders' meeting, or at a special shareholders' meeting. The information circular also solicits proxy votes and provides procedures for voting on key issues.

An information circular may be called a "Management Information Circular," "Notice of Annual Meeting of Stockholders" or "Notice of Special Meeting of Stockholders."

BREAKING DOWN 'Information Circular'

Sent along with a proxy, the information circular may cover matters such as the election of the Board of Directors, possible mergers and acquisitions, or the need for new financing. This document acts as a "heads up" to shareholders planning to attend the annual meeting, enabling them to be prepared to discuss the major issues currently surrounding the company. It also provides key information to shareholders who won't be attending the annual meeting.

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