What is the Annual General Meeting (AGM)?
An AGM is an important and mandatory meeting between the directors of a company and its shareholders. It covers various topics, including future directions, potential problems, financial statements, reports, the election of new directors, changes in power, ownership of shares, and more. Furthermore, it allows shareholders to pose inquiries.
An AGM is legally compulsory under Indonesian Law. A company must hold it at least once a year.
What Does the Process Look Like?
The onus of preparing for an AGM primarily lies with the company. A systematic approach precedes the commencement of the meeting, involving the meticulous arrangement of documents, information, statistics, and reports.
The procedural steps encompass the drafting of notice to shareholders, the preparation of essential details, the presentation of relevant reports during the meeting, and the comprehensive recording of minutes for subsequent reference.
What is Discussed in an AGM?
AGMs delve into a comprehensive range of topics, including the approval of minutes from the preceding AGM, annual financial statements, ratification of directors’ actions, voting for new directors, dividend payments, and auditing. These discussions give shareholders insights into the company’s performance, financial standing, and decision-making processes.
Other Important Details
Here are a few details that you would benefit from knowing:
- If you cannot attend an AGM physically, you can do so by proxy.
- The directors mentioned are not conventional but nominee directors, chosen based on performance. You can also hire a corporate service provider to help assess suitable candidates.
- It is essential to review how auditing was done to avoid fraud.
