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Annual General Meeting (AGM): Definition and Purpose

Photo: Annual General Meeting Photo: Annual General Meeting

An Annual General Meeting (AGM) is what?

An annual general meeting (AGM) is a gathering of interested shareholders once a year. The company’s directors provide an annual report to shareholders at an AGM that details the company’s performance and direction.

Voting shareholders make decisions about current matters, such as choosing auditors, CEO salaries, dividend payments, and appointments to the company’s board of directors.

The Procedure for an Annual General Meeting (AGM)

The main purpose of an annual general meeting, also known as an annual shareholder meeting, is to provide shareholders the opportunity to vote on corporate matters and the appointment of the company’s board of directors. Large corporations often only have one annual meeting where shareholders and executives engage.

The specific regulations regulating an AGM change depending on the jurisdiction. Both public and private corporations are required to have AGMs, as stated by many states in their statutes of formation, albeit the regulations are often more onerous for publicly listed companies.

Annual proxy statements, or Form DEF 14A, must be filed by publicly traded businesses with the Securities and Exchange Commission (SEC). The annual meeting’s date, time, venue, executive remuneration, and other pertinent information about the company’s shareholder voting and proposed directors will all be included in the file.

Annual general meetings (AGMs) are crucial because they provide transparency, allow shareholders to participate, and hold management accountable.

What is required to attend an annual general meeting (AGM)?

The regulations regulating an AGM are contained in the corporate bylaws of a corporation, along with its jurisdiction, memorandum, and articles of organization. There are rules stating, for instance, how long in advance shareholders must be informed of the location and time of an AGM and the procedures for voting by proxy.

The following topics must be covered at an AGM by law in most jurisdictions:

  • Minutes from the prior meeting: The minutes from the AGM from the previous year must be presented and approved.
  • Financial statements: The business submits its yearly financial accounts for approval to its shareholders.
  • The director’s activities are approved: The choices taken by the board of directors during the preceding year are approved and ratified by
  • The shareholders (or not). This frequently involves the distribution of a dividend.
  • The board of directors is chosen: The board of directors is chosen by the stockholders for the next year.

 Further Topics AGM (Annual General Meeting) topics discussed

At the AGM, shareholders can ask the board of directors and management why business performance has been lacking if the firm has not been operating effectively. The shareholders can demand adequate explanations and ask management what steps to take to turn the firm around.

In addition to choosing the board of directors, shareholders can vote on other corporate concerns during the AGM. For instance, if management is considering a merger or acquisition, the idea might be put before the shareholders, who could decide whether the business should move further.

An agenda for an AGM may also include several additional items. Directors and executives frequently take advantage of an AGM to discuss their outlook for the company’s future with shareholders. For instance, Warren Buffett gives lengthy remarks about his opinions of the business and the economy during Berkshire Hathaway’s annual general meeting (AGM).

Tens of thousands of individuals attend Berkshire Hathaway’s annual event each year, which has earned the moniker “Woodstock for Capitalists.”


  • The annual gathering of interested shareholders is known as an annual general meeting (AGM).
  • Directors of the firm report the company’s financial performance, and shareholders vote on the pertinent topics at the annual general meeting (AGM).
  • Voting by proxy, which can be done online or by mail, is typically allowed for shareholders who cannot attend the meeting in person.
  • The firm’s directors are frequently available for shareholder queries during the AGM.
  • An AGM is a venue for activist shareholders to voice their objections.

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