What is an Annual General Meeting (AGM)?
What is AGM in a meeting?
An annual general meeting (AGM) is a way for your company to present its financial statements (accounts) to shareholders (members). Shareholders can then ask questions about the health of your business. An AGM is therefore an important opportunity to address their concerns.
What is the difference between an AGM and a general meeting?
An Annual General Meeting (AGM) is the general meeting which must be held by the company every year, to discuss various business matters. An Extraordinary General Meeting (EGM) is any meeting other than the AGM in which business relating to company’s management are transacted.
Why and when is an annual general meeting held?
All companies except one person company (OPC) should hold an AGM after the end of each financial year. A company must hold its AGM within a period of six months from the end of the financial year.
What type of functions are performed in annual general meeting?
The duties of General Meeting
approving the financial statements. distribution of profits. discharging the members of the Board of Directors and the President from liability. the election of the Chairman, Vice Chairman and members of the Board and the remuneration paid to them.
When should an AGM be held?
private companies will no longer be required to hold an AGM. The provisions of this Chapter therefore do not apply to private companies; and. public company AGMs must be held within six months of their financial year-end.
Is an AGM a legal requirement?
Public and/or traded companies are required to hold the AGM within six months of the end of the Company’s financial year. This is a statutory requirement under the Companies Act 2006 (CA 2006). Private limited companies are not legally required to hold an AGM, unless the Articles of Association say otherwise.
Who attends an AGM meeting?
An annual general meeting (AGM) is a yearly gathering between the shareholders of a company and its board of directors. Generally, this is the only time that the directors and shareholders will meet throughout the year, so it is a chance for the directors to present the company’s annual report.
What are the functions of the AGM?
Annual General Meetings
- The presentation of the directors and audit committee reports.
- The presentation of the audited financial statements for the immediately preceding financial year;
- The election of directors, as required by law and the MOI;
- The appointment of the auditors and the audit committee;
What is the purpose of an annual meeting?
The main purpose of annual meetings is to allow shareholders to elect the directors who are responsible for the oversight of the company and its strategic direction. In addition, shareholders may be asked to vote on matters proposed by management or by other shareholders.