An Annual General Meeting (AGM) is a mandatory meeting for all companies. The requirement is for companies to hold an AGM within 6 months from the end of their financial year. At the AGM, the directors of the company will present an annual report of the company, typically the financial statements, to the shareholders. This report will highlight company performance as well as financial position.
At the AGM, the shareholders will vote on issues like reelection of company directors, the appointment of auditors, compensation packages and dividends. All or most matters which need to be resolved through a general meeting can also be done at the AGM.
Typically, a notice for the Annual General Meeting will be sent to all shareholders by the directors or the company secretary. The financial statements will typically be sent together with the notice so that the shareholders can look through it before the meeting. Also, the agenda of the meeting will be spelt out in the notice. This will allow shareholders to prepare any questions which they may want to bring up at the meeting. The shareholders who do not attend the meeting in person may vote by proxy.
The rules of the meeting should be spelt out in the company’s constitution or memorandum and articles of association. Thus the officers administering the AGM should refer to these documents and hold the meeting accordingly.
There are also provisions in the Companies Act to dispense the need to hold a physical AGM. After the completion of the AGM, the company has a month to file its annual returns with the Accounting and Corporate Regulatory Authority (ACRA).
When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.
The editorial team at Acra Filing Agent
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