Definition of Annual General Meeting

The AGM is a compulsory annual gathering of a company’s shareholders in order to report and present that year’s important events, discuss the company’s strategies and plans for the upcoming year/s and hold elections for their board of directors.

Points to remember

• Only shareholders with voting rights vote on issues, and other matters of concern. They also vote to select their board of directors.
• Shareholders who do not attend the annual meet vote through proxy, online or mail.
• The company’s by-laws include the rules that govern AGMs. However, the most common discussions at an Annual General Meeting (AGM) of a company include minutes of the previous year’s meetings, financial statements, ratification of the director’s actions and election of the board of directors.