Annual General Meeting
BeginnerAn annual general meeting (AGM) is a yearly meeting of a company’s shareholders, at which they receive information about the company’s performance and vote on important matters, such as electing directors and approving the accounts.
Most countries require public companies to hold an AGM each year. Typical business includes presenting the annual report and accounts, electing or re-electing directors, appointing the auditor, approving dividends and executive pay and voting on any shareholder proposals.
The AGM gives shareholders an opportunity to question the board and management directly. Shareholders who cannot attend can usually vote by proxy, appointing someone else to vote for them or submitting voting instructions in advance.
For example, at a company’s AGM, shareholders might vote to re-elect the board, approve a dividend and reject a proposed increase in executive pay.
Many AGMs are now held in hybrid form, with shareholders able to attend in person or online, and some are held entirely online, a practice that expanded during the COVID-19 pandemic. Companies may also call extraordinary general meetings during the year to approve urgent matters, such as a major acquisition. In the United States, the AGM is often called the annual meeting of shareholders.
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