The purpose of an Annual General Meeting (AGM) is for the company’s management and shareholders to interact.
The Companies Act of 2013 mandates the holding of an annual general meeting to look at the financial performance, the appointment of an auditor, and other matters.
To own an AGM, an organization must follow the processes outlined within the Companies Act of 2013.
The aim of an Annual General Meeting (AGM) is for the company’s management and shareholders to interact.
The purpose of an annual general meeting, also referred to as an annual shareholder meeting, is to permit shareholders to vote on corporate problems and appointment of the company’s board of directors.
Shareholders having voting rights vote on current topics like board of director appointments, executive compensation, dividend distributions, and auditor selection.
This meeting is sometimes the sole time during the year when shareholders and executives interact in large corporations. Annual general meetings (AGMs) are crucial because they provide transparency, allow shareholders to participate, and hold management accountable.
The company must provide its members a transparent 21-day notice before calling the AGM.
The place of the meeting, the date and day of the meeting, and the time of the meeting should all be included within the notification.
The business matter to be discussed at the AGM should even be mentioned within the notice.
The notice of the AGM should run to all members of the corporate, including their legal representatives within the case of a deceased member and therefore the assignee within the case of an insolvent member, the company’s statutory auditor(s), and the whole board of directors.
The notice must be sent by speed or registered post, or it may be sent electronically. The notice should be sent to the member’s address as listed within the company’s records.