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.