Who are the persons who should attend an annual general meeting?
By Olivia Shea
Key Takeaways
- An annual general meeting (AGM) is the yearly gathering of a company’s interested shareholders.
- At an annual general meeting (AGM), directors of the company present the company’s financial performance and shareholders vote on the issues at hand.
Who attends a general meeting of a company?
Attendance and speaking by directors and non-shareholders (1) Directors may attend and speak at general meetings, whether or not they are shareholders. (b) otherwise entitled to exercise the rights of shareholders in relation to general meetings, to attend and speak at a general meeting.
Can anyone go to AGM?
An ‘AGM’ is an Annual General Meeting, open to all members.
Is it necessary to attend AGM?
5 reasons why you should attend annual general meetings if you’re an investor. During the window from April to May, many companies usually file their financial results for the previous year. Most importantly, AGMs give you an opportunity to pose any questions you have to the directors of the company.
What happens at an annual general meeting?
The AGM reviews Standard Chartered’s performance over the past year and gives shareholders the opportunity to ask questions and vote on key issues. These include the approval of the annual report and accounts, the election of directors and the re-election of auditors.
What is the difference between a general meeting and an annual general meeting?
An Annual General Meeting is a company meeting held once every year, whereas an Extraordinary General Meeting covers all other meetings. Specific laws govern the operation of both meetings. Read our guide to uncover the difference between an annual general meeting and an extraordinary general meeting.
What happens at an Annual General Meeting?
What is the difference between an AGM and a general meeting?
An Annual General Meeting (AGM) is the meeting which should be organised by the company in each calendar year, to discuss various business matters. On the other extreme, an Extraordinary General Meeting (EGM) is any meeting other than the AGM in which business concerning company’s management are discussed.
What happens in an annual general meeting?
Can an AGM be held online?
Virtual AGMs held exclusively online without a corresponding physical meeting are not uncommon in the US. In some jurisdictions, there may be legal uncertainty as to whether holding a purely online meeting would satisfy all legislative requirements that apply to shareholder meetings.
What happens if a member does not attend the AGM?
If a member does not attend a single general meeting in five years, without the consent of the general body of the society, then s/he will become a non-active member. A non-active member, who does not attend even a single meeting in the next five years becomes liable for expulsion from the society.
Can a non owner attend an AGM?
Tenants are welcome to attend as well, but they may not vote on matters raised during the meeting. An attendance register must be kept. An owner who is not able to attend the AGM may sign a proxy form giving another owner the right to vote on his or her behalf at the meeting.
What are the statutory requirements of annual general meeting?
As per Companies Act, an annual general meeting must be held by every company once a year without fail. There cannot be a gap of more than 15 months between two AGMs. However, the first AGM of a company can be held at any date, within a period of 18 months, since the date of incorporation of the company.
What are the functions of annual general meeting?
The duties of General Meeting
- approving the financial statements.
- distribution of profits.
- discharging the members of the Board of Directors and the President from liability.
- the election of the Chairman, Vice Chairman and members of the Board and the remuneration paid to them.
What is the purpose of an extraordinary general meeting?
The extraordinary general meeting is utilized to deal with urgent matters that come up between annual shareholders’ meetings. EGMs are often considered for emergency measures such as resolving an immediate legal matter or the removal of a key manager.
What is general meeting in company law?
An Annual General Meeting (AGM) is held to have an interaction between the management and the shareholders of the company. The Companies Act, 2013 makes it compulsory to hold an annual general meeting to discuss the yearly results, auditor’s appointment and so on.
What happens if AGM is not held?
Consequences and Penalty for Default in Holding an AGM If the company further defaults in holding a meeting in accordance with the directions of the Tribunal, the company and every officer of the company who commit the default shall be punishable with a fine of up to Rs 1 lakh.
Can AGM be held without accounts?
You could hold the annual general meeting without laying the accounts, then lay the accounts later at a general meeting. Accounts are normally laid at an AGM (if they are laid), but subject to anything to the contrary in the articles it is permitted to lay them at a general meeting.
How many clear days notice should be given to all the members?
21 clear days
As provided in sub-section (1) of section 101, a general meeting may be called by giving not less than 21 clear days’ notice in writing or through electronic mode in such manner as may be prescribed.
