The General Meeting of Shareholders is the mandatory annual meeting of a company’s shareholders where they discuss and vote on important company issues.
A man walks past a Reliance Communication logo ahead of the annual general meeting in Mumbai on September 22, 2009. Reliance Communications, India’s No. 2 mobile operator, has revived plans for an IPO for its tower division more than a year after shelving a similar proposal. falling stock markets around the world. Reliance Communications, which has 85 million subscribers and aims to reach 100 million by the end of the year, will also go public with entities at the right time to reduce debt, chairman Anil Ambani said at the annual shareholder meeting. REUTERS/Arko Datta (INDIAN BUSINESS)
Each financial year has certain important events for companies. These include quarterly financial reports, submission of final accounts, and others. However, one of the most important events for the company of the year is the annual general meeting (AGM). Here’s everything you need to know about AGM. AGM is a mandatory annual meeting of the company’s shareholders. While all shareholders are permitted to attend the meeting, their attendance at the meeting is not mandatory. All companies must hold a general meeting of shareholders within six months of the end of the previous financial year, in accordance with the provisions set out in the Companies Act 2013.
The meeting allows the management of the company to provide shareholders with all the necessary information about the company’s activities, appointments and other details for the previous and current year.
A general meeting of shareholders must be held without fail, even if the company is a private company. Only single person companies (OPCs) are exempt from conducting an AGM.
What purpose does it serve?
In addition to being a statutory mandate, the AGM is the most efficient way for a company to communicate with the largest number of its shareholders at the same time. The Company will notify all its shareholders 21 days in advance of the upcoming general meeting of shareholders. Notice is also sent to the directors, auditors and all members of the company. In addition, the notice also specifies the activities to be carried out at the AGM. The assembled shareholders may vote on these matters.
These topics include the discussion and adoption of the company’s audited financial statements, the discussion of the director’s report and the auditor’s report, the discussion of the announcement of dividends, and the appointment of new directors and auditors. In addition, other issues may be brought up for discussion as special company matters, although they require a 75 percent vote to make a decision.
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