Annual General Meeting (AGM)

What is Annual General Meeting (AGM).?

As the name itself is pretty self explanatory, Annual General Meeting (AGM) refers to an important meeting that is held once a year – one which is participated by directors of the company as well as its shareholders.

The primary objective of such meetings is to provide shareholders of a company with detailed reports about the company’s performance throughout the year. In addition, any vacancy in the Board of Directors is filled with due consent from the shareholders. Typically, AGMs also witness the company chief executive sharing the future outlook of the organization with the participants as well as answering their questions on a myriad of topics relevant to the company’s affairs.

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Generally, the notice of the meeting alongside a copy of the Annual Report (sometimes a shortened or abridged edition) is sent out to all shareholders. Shareholders are allowed to send a proxy to attend the AGM on his or her behalf. The participants can also urge the officials to make new resolutions after subjecting them to a vote amongst the equity shareholders.

So, simply put, an AGM is organized every year with the vision of updating the members on the company’s previous as well as future activities. In case the organization is run by a paid committee or volunteers, the AGM is used as the forum for electing the directors or officers.

Edited and Updated 4th January 2014

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