Annual General Meeting (AGM)

Annual General Meeting (AGM)

What is an AGM?

An annual general meeting (AGM) is a yearly gathering of a company’s shareholders, hosted by the board of directors and senior management. Its primary purpose is to report on the company’s performance, allow shareholders to vote on key matters, and provide a forum for shareholders to ask questions of management.

Purpose and importance

• Ensures transparency and accountability of management and the board.
• Provides a formal mechanism for shareholders to approve financial statements, elect directors, and vote on material matters.
• Enables shareholder engagement—both routine governance and, at times, activism or challenges to management decisions.

How an AGM works

• Timing and procedures are set by the company’s governing documents (bylaws, articles of association) and applicable law.
• Public companies typically notify shareholders in advance and file proxy materials detailing the meeting agenda, director nominations, executive compensation, and other matters. In the U.S., these filings accompany the proxy statement.
• Shareholders with voting rights may attend in person or vote by proxy (online, by mail, or other permitted methods).
• If issues arise between AGMs, a company may call an extraordinary general meeting (EGM) to address them.

Typical agenda items (required in many jurisdictions)

Most AGMs cover several statutory or customary items, including:
* Approval of minutes from the previous AGM.
Presentation and approval of annual financial statements.
Ratification of directors’ actions and decisions from the prior year (including dividend approvals).
Election or re-election of the board of directors.
Appointment or ratification of auditors.

Additional topics often addressed

Beyond required items, AGMs may include:
* Shareholder Q&A about company performance and strategy; shareholders can press management for explanations or future plans.
Votes on mergers, acquisitions, reorganizations, or large corporate actions.
Proposals on executive compensation, corporate governance changes, or shareholder resolutions.
* Management presentations outlining the company’s vision, strategy, and outlook.

Shareholder engagement and activism

AGMs are a key venue for investor influence. Activist shareholders may use the meeting to raise concerns, propose changes to strategy or governance, or seek board seats. Even routine AGMs can become focal points for broader debates about company direction.

Example (illustrative)

Some companies’ AGMs attract unusually large attendance and media attention, where management uses the event to present long-form commentary on strategy and the broader market.

Key takeaways

• An AGM is the annual forum for shareholders to hold management accountable, approve financials, elect directors, and decide material corporate matters.
• Rules and required agenda items vary by jurisdiction and company governing documents, with public companies subject to stricter disclosure and proxy-filing obligations.
• Shareholders can participate in person or by proxy, and the AGM often serves as the primary direct interaction between shareholders and executives each year.