The full form of AGM is Annual General Meeting.
The Annual General Meeting is a meeting where all the shareholders and partners of the company meet at a bug auditorium like stricture and argue all the issues and matters related to the company.
Annual General Meeting is a gathering organized by every Primate limited company every year in which all shareholders will talk about overall legal and regulatory issues of the company.
The meeting is organized almost by all private limited companies once a year. The main motive of the meeting is to gather all the shareholders and provide them with the information related to the growth and development of the company in the coming year.
All the shareholders are supposed to present their views and ideas to be imposed for allover growth in capital and turnover of the company.
Purpose Of Annual General Meeting
Conducting AGM every year is considered to be the best strategy for the development and growth of the company. For all companies, whether they are private or public limited, it is the initial requirement of them to organize a meet-up every year as AGM.
The main issues are discussed including the issues related to dividends, conformations, annual growth, strategies, and police need to be implemented in the coming year. According to successful incorporation, AGM is the best strategy to contribute towards the growth of the company.
Functions Of Annual General Meeting
Many things need to be set up during the Annual general meeting of a company, some of these issues are mentioned below:
- The deliberation of the annual accounts and analyzed report will be discussed about shareholders.
- The proclamation of the dividends among the major shareholders is announced along with the annual bonus.
- Prizes and bonuses are given to the best performers of the year. The CEO and board of directors are honored.
- Recruitment if the new board of directors and replace the old one takes place.
- New strategies for the coming year are discussed after keeping in mind the views of all shareholders.
- The presentation of the recent financial report is discussed among partners and directors.
- Whether any changes in the constitution of the company need to be implemented or not.
Procedure Of Annual General Meeting
There is a legal procedure to organize an annual general meeting, the protocols are given below:
- A copy of the annual accounts of the company is to be sent to all shareholders and boards of directors.
- The report of growth and detailed analysis of the company’s position needs to be sent to the shareholders and participants of the AGM.
- A report of the auditor of the annual accounts must be attached to the above report.
- The invitation along with passes and venue details is shared with the members of the annual general meeting.
Annual General Meetings In COVID-19 Pandemic
In the COVID-19 pandemic, it is difficult to hold offline meetups of the partners and shareholders of the company that is why a virtual meeting is held on various platforms like zoom and google meet where the same procedures are discussed.
Some companies postponed their Annual general meeting and scheduled it after the lockdown was removed. In countries like India, most of the companies held virtual meetings successfully. Allover AGM is a basic need of any company whether it is private limited or public limited.