Annual general meeting (A.G.M.)

Updated: Aug 20, 2021

It is common practice, even where not legally imperative, for all organizations to hold an annual general meeting of members, specified as such, where those members are given the opportunity to meet and talk with each other and with those who run the organization on their behalf. The latter will, at such a meeting, be asked to give an account of their stewardship since the previous meeting.

In the case of a limited company a meeting must be held in each calendar year, and in the notice summoning the meeting it must be specifically designated as the annual general meeting of the company. Additionally, not more than fifteen months may elapse between successive A.G.M.s though, in the case of the first meeting, this may be held at any time within eighteen months of incorporation. The business to be conducted at a company’s A.G.M. is not defined by statute, apart from the requirement to appoint directors, but it is normal for the agenda to cover, inter alia, the auditor’s remuneration and appointment, the consideration of the annual report, the payment of dividends, etc.

All members must receive notice, as prescribed in the Companies Act, and that notice must be accompanied by forms allowing the member to appoint a proxy to attend and/or vote in his stead. Provided the statutory rules are followed, any business may be transacted at an A.G.M. and special or extraordinary resolutions are not excluded (but see the requirements regarding these).

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.