Annual General Meeting:

An Annual General Meeting (AGM) is a yearly assembly of interested shareholders in a company. During this AGM, the Company’s director presents the annual report which contains information regarding the company’s performances and strategies during the particular financial year.

It is mainly held to let shareholders decide on company concerns and the appointment of directors towards the board of directors. Shareholders with voting rights vote on matters like appointment of board of directors, the compensation of executives, dividend payment and selection of auditors.

Shareholders who cannot attend the conference may vote by proxy, complete digitally, or email.

Importance of Annual General Meetings

Except for a One Person Company, every company must hold an AGM every year. The holding of yearly general meetings is a legal requirement. A public or private business, whether limited by shares, limited by guarantee, and unlimited, is required to have an AGM for the following reasons:

• To run a business on behalf of an organization
• To make critical decisions for the company.
• To keep shareholders informed about the company's past and future operations.
• The corporation chairman is to present an overview of the organisation's status.
• To accomplish the company's statutory responsibility by holding an annual meeting.
• To approve the company's audited financial statements.

What happens during an Annual General Meeting?

An Annual General Meeting examines its performance and discusses its long-term strategy. It is a moment for shareholders to question the board of directors, obtain answers for poor performance, and confront them. An AGM is also a wonderful opportunity to acknowledge positive results.

During an AGM, shareholders can vote on decision-making and fix any vacant board of director positions.

Shareholders who cannot attend the event can vote by proxy, which they can do by mail or by appointing another shareholder to participate in their place.

Qualifications required for Annual General Meetings

 Deadline for Annual General Meetings

1. The first Annual General Meeting 

When the company’s 1st fiscal year ends, the very first AGM should be held within nine months.

2. Subsequent AGM s

Subsequent AGMs must be held within 6 months of the end of the fiscal year.

Moreover, there should be no more than 15 months between the dates of one company's annual general meeting and the next.

3. Annual General Meeting Date and Location

An Annual General Meeting can be held during business hours but not on a National Holiday

The period between 9 a.m. and 6 p.m. is defined as business hours. It should be mentioned that the meeting must be scheduled during business hours. However it may last longer and end after work hours.

Final Outlook

The Annual General Meeting enables participants to actively discuss the company's business and exert ultimate authority over the company's administration. Suppose a business fails to hold its AGM in any given year. In that case, every member has a Statutory Right to petition the National Company Law Tribunal to summon or lead the company to call the Annual General Meeting.

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