An Annual General Meeting (AGM) is a mandatory meeting held once a year by a company’s board of directors and management to update shareholders on the company’s performance, financial status, and plans. AGMs are typically required by law or the company’s bylaws and are an essential aspect of corporate governance.
Key aspects of an Annual General Meeting include:
Financial Reporting: The company presents its audited financial statements, including the income statement, balance sheet, and cash flow statement, to shareholders for their review and approval.
Director Elections: Shareholders vote to elect members of the board of directors or to re-elect existing directors whose terms may be expiring. This process allows shareholders to have a say in the company’s governance and leadership.
Resolutions and Voting: Shareholders vote on various resolutions proposed by the board of directors or by fellow shareholders. These resolutions may include approving dividend payments, appointing auditors, approving executive compensation plans, or making changes to the company’s bylaws.
Q&A Session: Shareholders have the opportunity to ask questions and express their concerns directly to the company’s management and board of directors. This interaction fosters transparency and accountability in corporate decision-making.
Proxy Voting: Shareholders who are unable to attend the AGM in person can vote by proxy, allowing them to delegate their voting rights to someone else or to the company’s management.
Disclosure Requirements: Companies are required to provide shareholders with a notice of the AGM, along with relevant documents such as the annual report and proxy materials, within a specified timeframe before the meeting.