What Should Be Included at an AGM?
Our previous post looked at what an AGM is and why it should happen.
To recap, the Annual General Meeting (AGM) happens once a year and is when a company's shareholders meet to discuss the company's performance and strategy for the upcoming year.
Any shareholders with voting rights are able to vote on matters that arise during the AGM, thereby shaping the future of the company.
But what should you actually be talking about during the AGM?
What to talk about when the company is doing well
The AGM has a set number of things you have to talk about by law:
- The minutes of the previous AGM - you need to present the minutes from the last AGM and have them approved
- Financial statements - the company needs to present financial statements to the shareholders for their approval
- Approval of the director's actions - the shareholders need to approve and ratify the decisions made by the board of directors in the previous year; this can include payment of dividends
- Election of the board of directors - the shareholders elect the board of directors for the upcoming year
What should be included in the minutes of the AGM?
There are a few items that you need to include in the minutes of the AGM:
- Company details - the name of the company and the address of the registered office
- Meeting details - the date, time, and location of the AGM
- Attendees details - the names of everyone who attended the AGM
- Proxy details - the names of anyone there by proxy and the names of those they are representing
- Absentee details - the names of anyone who cannot attend the AGM
- Proposed resolution(s)
- Results of resolution(s)
- How people voted - a list of members who were for and against the resolution
- Objections and queries - details of any objections or queries raised about the resolution(s)
- Any other business
- Closing remarks
What to talk about if the company isn't doing well
Optionally, if the company isn't doing as well as anticipated, shareholders can use the AGM as an opportunity to question the directors about the decisions they have made.
The shareholders can demand satisfactory answers to their questions during the AGM. Additionally, they can inquire about what the directors plan to do to turn the situation around.
Does the AGM have to be held face-to-face?
Generally speaking, yes, they do need to be held face-to-face. However, in the light of the Covid-19 pandemic, you are able to hold them virtually for the time being.
The format and the topics discussed should be the same even if the meeting is being held virtually.
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