An Annual General Meeting (AGM) is held for the purpose of having a yearly gathering to generate interactions between the shareholders and the management of the company. As per the Companies act, 2013, it is mandatory for the company to hold an annual general meeting to talk through and discuss the yearly result of the company, the auditor’s appointment and hold many other discussions.
At the annual general meeting, the directors of the company are the ones to represent the annual report, including the information regarding the company’s performance and strategies, to the Shareholders of the company. A shareholder has voting rights to vote on matters being discussed in the Annual General Meeting (AGM), such as appointments of new directors in the Board of Directors, executives' compensation, dividend payments and the appointment of auditors.
A company is required to follow this procedure of Conducting an Annual General Meeting as per the Companies Act, 2013.
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According to the Companies Act, 2013, the company is required to issue a Notice of 21 days to the members calling for an Annual General Meeting (AGM)As stated under the Act, it is also a must for the notice to mention the venue, the day, the date of the meeting and the hour at which the meeting is to be held. The business to be conducted at the Annual general meeting should also be stated under the notice. The Notice is required to be sent to:
The company may send the Notice in writing via speed post or registered post or electronic mode, at the address of the members, as saved in the records of the company.
When using the electronic mode for the purpose of communication, the notice must be sent to the e-mail address of the member as saved in the records of the company. The Notice can either be typed out in the form of text or as an attachment in an easily accessible format. Furthermore, the notice of the Annual General Meeting (AGM) can also be made accessible on the website of the company or any other website as may be specified by the government.
Furthermore, If 95% of the members of the company, that are entitled to vote in the meeting, agree to a shorter period of notice for the meeting then an Annual General Meeting (AGM) can be held at a notice period shorter than 21 days. The Consent of the members can be acquired in writing or via electronic mode.
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