Annual General Meeting is the full form of AGM.
The Annual General Meeting is a gathering of all of the company’s shareholders and partners in a big auditorium like stricture to debate all of the company’s issues and matters.
Every year, every Primate limited company holds an annual general meeting at which all shareholders discuss the company’s overall legal and regulatory issues.
The meeting is held once a year by practically all private limited businesses. The meeting’s major goal is to bring together all of the company’s shareholders and give them with information on the company’s growth and development in the future year.
All shareholders are expected to express their opinions and suggestions for the company’s overall capital and turnover growth.
Purpose Of Annual General Meeting
The best strategy for the company’s development and growth is to hold an annual general meeting. It is a legal necessity for all corporations, whether private or public limited, to hold an annual general meeting (AGM) every year.
The primary topics mentioned include dividends, conformations, annual growth, plans, and policies that must be adopted in the future year. AGM is the finest approach for contributing to the company’s growth, according to successful incorporation.
Functions Of Annual General Meeting
Numerous things must be put up during a company’s annual general meeting; some of these difficulties are listed below:
- Shareholders will be discussed during the deliberation of the annual accounts and analyzed report.
- Together with the yearly bonus, the proclamation of dividends among big shareholders is made.
- The best performers of the year are awarded prizes and bonuses. The CEO and the board of directors have been recognized.
- The new board of directors is being recruited to replace the outgoing one.
- New strategies for the future year are considered while all shareholders’ opinions are taken into account.
- The recent financial report is presented and debated among partners and directors.
- Whether or whether there should be any revisions to the company’s constitution.
Procedure Of Annual General Meeting
An annual general meeting must follow a legal procedure, which are outlined below:
- All shareholders and boards of directors should receive a copy of the company’s annual accounts.
- The shareholders and AGM participants must receive a growth report and a detailed analysis of the company’s position.
- The aforementioned report must be accompanied by a report from the auditor of the annual accounts.
- Members of the annual general meeting receive an invitation, as well as passes and venue information.
Annual General Meetings In COVID-19 Pandemic
Due to the difficulty of holding offline meetings of the company’s partners and shareholders during the COVID-19 epidemic, a virtual meeting is held on platforms like as Zoom and Google Meet where the identical procedures are covered.
Numerous businesses rescheduled their annual general meetings when the lockdown was lifted. Virtual meetings were successfully organized in most countries, including India. Regardless of whether a company is private or public, an annual general meeting (AGM) is a necessity.