AGM — Annual General Meetings, a compulsory gathering where the company informs its shareholders about the current financial situation. The officers present financial statements and the shareholders issue a resolution of approval. Other resolutions take place, too: such as dividend declaration, the re-election of directors, change in directors’ fees, etc.
When to hold AGM and send notice?
If you hold offline AGM, it has to happen within 6 months after each financial year end. The notice to the members depends on what you plan at the event. It has to go out a minimum of 14 days before the meeting if you will be passing an ordinary resolution. For special resolution, 21 days timeline is necessary.
What you need to know about AGM
You can dispense with offline AGMs if you are not a public company. To do so, you need to pass a resolutiopn to stop holding phisical AGMs and all the shareholders must endorse it. However, there are 3 cases when a real AGM still has to take place:
- A new resolution overrules the previous one that dispensed with AGMs
- A member requests one within a specified timeline
- A member requests one within 14 days after the financial statements went out