What is an Annual General Meeting?

An AGM gives insights into what steps made the company more successful and which steps caused loss. It helps the members and the board to decide the future course of action.

Annual General Meeting is held every financial year and it is mandatory for everyone. 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

The first AGM of a company can be held within a period of 18 months, since the date of incorporation of the company.The annual general meeting has to be held at the registered office of the company, or any registered branch of the company, if the regular office is not available, with proper prior notice.

Legally, a notice period of 21 days must be given to all the members before the meeting. But if there is a need to conduct a meeting earlier, with the consent of all voting members, it can be held earlier.The Board may fix day, date time and place for conduct of such meeting ormay delegate that authority to its managing director or any other director to take steps for conduct of annual general meeting.

The documents needed to be sent along with the notice of the meeting are a copy of annual accounts of the company, the directors and the auditor’s report of the company’s final accounts for the given year.

Unless the articles of the company state otherwise, the quorum for an Annual General Meeting is as follows

• Public companies – At least 5 members must be present.
• Other companies – At least 2 members must be present within half an hour of the commencement of the meeting.

What business is undertaken at a typical annual general meeting isthe declaration of dividend among shareholders, Consideration of annual accounts. Discussion of the director’s report and the auditor’s report.Appointment and fixing of the remuneration of the statutory auditors,appointing replacement directors in place of existing directors retiring

To address any issue other than the five mentioned above, a special notice regarding the issue is to be served to members before the meeting. This is sent with the notice for calling the meeting