Purpose of AGM
1. Discussion Regarding Important Matters: An annual general meeting is a gathering of directors and shareholders. It should be noted that any shareholder with voting rights can propose any motion at a meeting. The meeting allows shareholders to discuss matters of mutual concern.
2. Reporting of Financial Statements: Annual general meetings (AGMs) usually serve as a means to present the balance sheet, income statement, and cash flow statement to shareholders. This enables shareholders to assess the business’s financial health as well as its performance.
3. Appointment of Auditors: During the annual general meeting, shareholders have a chance to give their consent to the appointment of external auditors who will be responsible for inspecting the company’s financial records and verifying that they are accurate and compliant.
4. Declaration of Dividend: If the company is profitable, the decision to give dividends to shareholders is made at the AGM.
5. Election of Directors: AGMs often involve the election or reappointment of board of director members. Shareholders have the ability to elect applicants to represent their interests and monitor the company’s management.
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