An Annual General Meeting (AGM) is a mandatory yearly gathering of a company’s shareholders and its board of directors. It is a legal requirement in many jurisdictions for companies to hold an AGM to ensure transparency, accountability, and communication between the company’s management and its shareholders. The specific regulations regarding AGMs can vary depending on the country and the legal structure of the company.

Key aspects of an Annual General Meeting include:

1. **Frequency:**
– As the name suggests, AGMs are held annually. The exact timing can be specified in the company’s bylaws or in accordance with legal requirements.

2. **Purpose:**
– The primary purpose of an AGM is to provide shareholders with important information about the company’s performance, financial health, and future plans.
– Shareholders have the opportunity to ask questions, raise concerns, and vote on various matters.

3. **Agenda:**
– The agenda of an AGM typically includes items such as the approval of the previous year’s financial statements, the declaration of dividends, the election or re-election of directors, and the appointment of auditors.
– Shareholders may also vote on other matters brought before the meeting.

4. **Financial Reports:**
– The company’s financial statements, including the balance sheet, income statement, and cash flow statement, are presented to shareholders for approval.
– This provides transparency regarding the company’s financial performance.

5. **Board Elections:**
– Shareholders often vote to elect or re-elect members of the board of directors. This is a key governance function, and shareholders may have the opportunity to nominate candidates for director positions.

6. **Dividend Declaration:**
– If the company is profitable, the AGM is the forum where the board of directors may recommend the payment of dividends to shareholders.

7. **Shareholder Participation:**
– Shareholders are given the chance to ask questions, express their opinions, and vote on various matters. This participation is a fundamental aspect of corporate democracy.

8. **Minutes:**
– Detailed minutes are kept during the AGM, documenting the discussions, decisions, and voting results. These minutes are often made available to shareholders.

AGMs play a crucial role in corporate governance, allowing shareholders to have a say in important company decisions and ensuring that the board of directors is accountable to the shareholders. In some cases, companies may also use the AGM as an opportunity to showcase achievements, present future plans, and engage with shareholders on a more informal basis.