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Annual General Meeting (AGM)


The Annual General Meeting (AGM) is a mandatory yearly gathering of a company’s shareholders. At the AGM, they review the company’s financial performance, elect the board of directors, and address other company-related issues. It’s a platform for shareholders to receive information and express their concerns or ideas to the company’s management.


Annual General Meeting (AGM) can be phonetically transcribed as /ˈæn.juː.əl ˈdʒenrəl ˈmiːtɪŋ/ (AE-n-yoo-uhl JEHN-ruhl MEE-ting) in International Phonetic Alphabet (IPA).

Key Takeaways

  1. Shareholder Participation: The Annual General Meeting (AGM) serves as a platform for shareholders to participate in major decision-making processes of a company. It allows shareholders to ask questions, vote on company matters, and express their views on the company’s performance and future plans.
  2. Statutory Requirement: It is a statutory requirement for all public companies to hold an AGM every year. This is a legal mandate designed to ensure accountability, transparency, and good corporate governance. Missing the AGM could lead to fines and other penalties for the company.
  3. Discusses Business Performance: An AGM discusses the business performance of the company over the past year, future strategies, dividend declaration, and other important company matters. Key financial statements are presented and the directors and auditors of the company are selected at the AGM.


The Annual General Meeting (AGM) is a crucial event in the business and finance world as it offers a comprehensive overview of a company’s health to its shareholders. It is a legally required session where a firm’s leadership presents its performance, future plans, and financial statements, providing shareholders a chance to voice out their opinions, concerns, and vote on vital matters like electing the board of directors or approving dividends. AGMs maintain transparency, accountability, and foster better decision-making by reassuring shareholders about their investments and their role in the company’s evolution. Therefore, an AGM plays a dynamic role in showcasing a company’s financial, strategic, and operational paths, thereby facilitating the overall growth and success of the business.


The Annual General Meeting (AGM) serves a crucial function in the realm of business finance, underscoring an organization’s commitment to transparency, accountability, and stakeholder engagement. At its core, the AGM is meant to be an open forum for shareholders, directors, and management teams to discuss the company’s performance, strategies, and future direction. It offers shareholders – the company’s true owners – a unique opportunity to engage directly with the individuals tasked with managing the company’s resources. By expressing opinions, posing questions, or voting on key matters, shareholders have a chance to actively participate in the company’s governance during the AGM.The AGM is used for numerous purposes, most notably to fulfill legal obligations under corporate law which requires companies to hold these meetings on an annual basis. At these events, significant decisions, including the appointment or re-election of directors, approval of financial statements, distribution of dividends, and changes to company constitution, are made. The meeting also gives management the opportunity to present the annual report, outlining the company’s financial health and operational activity over the past year. Through the AGM, companies can build investor confidence, ensure a sense of inclusivity across all shareholders, and promote a culture of openness and accountability, all of which can lead to sustainable growth and long-term success.


1. Apple Inc.’s Annual General Meeting: Apple Inc., one of the largest technology companies worldwide, holds its AGM usually in February. The meeting allows shareholders to engage with the board of directors and executive team, discuss company performance and future strategies, and vote on various corporate matters. In 2020, Apple discussed and shared its future strategies for growth along with addressing concerns about human rights in its supply chains.2. Berkshire Hathaway Inc.’s AGM: Berkshire Hathaway, the multinational conglomerate holding company headed by Warren Buffet, holds its AGM in Omaha, Nebraska. Commonly referred to as the “Woodstock of Capitalism” , the AGM attracts thousands of shareholders from around the world to listen to Warren Buffet and Charlie Munger’s wisdom on investments. Various company matters are discussed and voted on, making it a significant event in the business world.3. Tesla Inc.’s AGM: Elon Musk’s electric vehicle and clean energy company Tesla, typically hold their AGM in the third quarter of the year. It presents a summary of Tesla’s financial performance and plans for future products or strategies. For instance, in the 2020 AGM, Musk announced plans for a more affordable, $25,000 electric car, reflecting the strategic decisions made in the assembly. It was also in this meeting where shareholders approved a stock split to make owning shares in the company accessible to more investors.

Frequently Asked Questions(FAQ)

What is an Annual General Meeting (AGM)?

The Annual General Meeting (AGM) is a mandatory annual gathering of a company’s interested shareholders. At the AGM, the company’s directors present an annual report containing information for shareholders about the company’s performance and strategy.

Who can attend an AGM?

All registered shareholders have the right to attend an AGM. Sometimes, others such as potential investors, partners, or proxy voters can also attend, depending on the company’s constitution.

Is participation in the AGM mandatory for all shareholders?

While it’s not mandatory for shareholders to attend the AGM, it’s a valuable opportunity for them to participate in key company decisions. Shareholders can also vote on certain issues during the AGM.

What is discussed in an AGM?

In an AGM, the company’s performance over the past year is reviewed, financial statements are presented, and issues like dividend payments and board member elections are decided.

What is the difference between an AGM and an Extraordinary General Meeting (EGM)?

An AGM is a scheduled yearly meeting whereas an EGM is organized as required to discuss urgent issues or opportunities that cannot wait until the next AGM.

Can decisions be made in an AGM without all shareholders present?

Yes, as long as the AGM meets the quorum requirements as outlined in the company’s constitution. The quorum is typically a minimum number or percentage of shareholders who must be present to validate the decisions made at the meeting.

How are votes cast in an AGM?

Voting in an AGM can be carried out in several ways, such as a show of hands, filling out a form, or electronic voting. The method depends on the company’s rules and regulations.

Can a shareholder appoint a proxy for the AGM?

Yes, if a shareholder is unable to attend the AGM, they can appoint a proxy to attend and vote on their behalf. The process for appointing a proxy may vary from company to company.

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