What is Annual General Meeting (AGM)?

The annual general meeting serves as a required yearly assembly for all interested shareholders of the company. The company directors present their annual report to shareholders during this meeting which contains the company's operational outcomes and future plans. AGM is an important corporate practice across the industry because it promotes transparency, accountability, and informed participation. This article explains what is AGM. 

AGM Major Components 

After understanding the annual general meeting meaning, let's understand its components: 

• Financial Statement Review 
  The company presents audited financial statements. This helps shareholders clearly understand performance over the past financial year. It is one of the most important parts of the meeting. 
• Director’s Report Discussion 
  The board shares updates on operations, strategy, and future plans. In many cases, this gives investors a detailed idea of the business direction. 
• Appointment or Reappointment of Directors 
  Shareholders vote on board changes. This process ensures strong and reliable leadership that can grow with demand. 
• Dividend Declaration (if applicable) 
  If the company proposes dividends, shareholders review and approve them. This step reflects how earnings are distributed or retained. 
• Auditor Appointment 
  Members approve auditors for the next term. This improves trust and keeps financial reporting strong and effective. 
• Shareholder Queries and Voting 
  Investors can raise questions and vote on resolutions. This makes the AGM useful and helps owners in decision-making. 

Overall, these components make the AGM a complete solution for shareholder engagement and corporate oversight. 

When is an AGM Conducted? 

Here is when the AGM of a company is conducted: 

1. First AGM Timeline 
   The first annual general meeting is usually held within nine months of the end of the first financial year. 
2. Subsequent AGM Frequency 
   After the first meeting, companies must conduct an AGM once every financial year. 
3. Gap Between Two AGMs 
   The time gap between two AGMs should not exceed fifteen months in most cases. 
4. Statutory Time Window 
   Many companies hold the meeting within six months of the end of the financial year. 
5. Business Hours Requirement 
   AGMs are generally conducted during business hours on working days. 

Criteria for Holding an Annual General Meeting (AGM) 

The criteria for holding an AGM in company are as follows: 

• Duration: Every company except one-person firms must hold one yearly. 
• Notice Period: The notice period is 21 days minimum, shorter if 95% of shareholders agree. 
• Quorum: The quorum is 2 members for private companies; it scales with size for public ones. 
• Timing: The time to conduct the AGM of a company is 9 AM to 6 PM, not on national holidays. 
• Place: An AGM can be conducted at the registered office or another spot set by the board. 
• Voting: The voting for AGM is open to shareholders with rights, and proxies can vote by post or email. 

These rules from the Companies Act Sections 96 and 103 guide the process. 

Terms Related to an Annual General Meeting 

The following are some important terms related to an annual general meeting: 

• Quorum: Minimum members needed to start the meeting. 
• Proxy: A vote cast by someone on behalf of an absent shareholder. 
• Ordinary Business: Standard items like accounts approval and director polls. 
• Special Business: Extra topics needing shareholder votes. 
• Agenda: List of items to discuss. 

Notice: Official invite sent 21 days prior to AGM. 

Conclusion 

An annual gathering protects shareholder interests and ensures corporate transparency. By reviewing the results of such meetings, investors at all experience levels can make decisions regarding their portfolios. As more people rely on online platforms, tracking AGM updates through an online trading app has become easier and more flexible. Keeping track of these meetings allows one to see how the capital is being managed effectively.