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Annual General Meeting (AGM)
An Annual General Meeting (AGM) is a yearly meeting conducted by a company to communicate with its shareholders, review financial performance, and discuss key decisions. It is a statutory requirement under the Companies Act, 2013, applicable to certain categories of companies in India.
AGMs are crucial for maintaining transparency and accountability within a company. During the AGM, directors present the company’s annual financial statements, discuss future strategies, and obtain shareholder approval for essential decisions like dividend declaration, director appointments, and auditor reports.
Importance
1. Statutory Compliance : Ensures adherence to the Companies Act, 2013.
2. Transparency : Allows shareholders to review financial performance and voice opinions.
3. Decision Approval : Provides a platform for shareholder approval of key resolutions.
4. Accountability : Directors report the company’s progress and future plans.
5. Shareholder Engagement : Strengthens communication between the company and its shareholders.
Documents Required
Features
Features & Benefits of Annual General Meeting (AGM)
Minimum Frequency
Quorum Requirements
Resolutions Passed
Voting Options
Annual General Meeting (AGM)
Financial Disclosures
Shareholder Rights
Minutes Maintenance
Filing with MCA
Promotes Corporate Governance
Comparison with Related Services
| Feature | Annual General Meeting (AGM) | Board Meetings | Shareholder Resolutions |
|---|---|---|---|
| Objective | Review and approve company matters | Operational decisions | Approval for key matters |
| Participants | Shareholders | Board of Directors | Shareholders |
| Mandatory Filing | Yes (annually) | Yes (once) | Yes |
| Frequency | Annually | Quarterly (minimum) | As required |
| Scope | Financial and strategic issues | Operational and policy issues | Specific matters |
| Voting Methods | Show of hands, e-voting | Show of hands | E-voting, postal ballot |
| Mandatory Filing | Yes (for specific resolutions) | Yes (for specific resolutions) | Yes (if special resolution) |
| Regulatory Authority | MCA | MCA | MCA |
| Quorum Requirement | Defined for shareholders | Defined for directors | for shareholders |
| Legal Validity | High | High | High |
Frequently Asked Questions
Who is required to conduct an AGM?
Public companies and private companies (excluding OPCs and small companies) must hold an AGM annually.
What is the deadline for holding an AGM?
- The first AGM must be held within 9 months of the end of the first financial year.
- Subsequent AGMs must be held within 6 months of the end of the financial year, but no later than 15 months after the previous AGM.
Can an AGM be conducted online?
Yes, AGMs can be conducted through video conferencing or other electronic means, as permitted by the MCA.
What are the consequences of not conducting an AGM?
Non-compliance results in penalties for the company and its directors, including fines up to ₹1,00,000 and ₹5,000 per day for continuing default.
Are AGMs mandatory for all private companies?
No, AGMs are not required for One Person Companies (OPCs) and small companies.
What is the difference between an AGM and a Board Meeting?
- AGM: Involves shareholders and focuses on reviewing financial statements, approving dividends, and other significant decisions.
- Board Meeting: Involves directors and focuses on operational and policy decisions.