An AGM, or Annual General Meeting, is a yearly gathering of a company’s shareholders. In this meeting, company leaders (like directors and the CEO) present the company’s performance, share important updates, and get shareholders’ approval for key decisions.
🧠 Think of it like a school’s annual day—but for a company! Everyone comes together to hear the yearly report and vote on important matters.
Key Purposes of an AGM
- Present the Annual Financial Report – Profit, loss, income, and spending.
- Approve or reject dividends – How much profit will be shared with shareholders.
- Appoint or re-appoint directors – Who will run the company in the coming year.
- Appoint auditors – Who will check the company’s books.
- Share future plans – Growth, investments, or changes in company direction.
Is an AGM Mandatory?
Yes, for:
- All companies (except one-person companies) as per the Companies Act, 2013
- First AGM: Must be held within 9 months of the financial year end
- After that: Once every financial year, within 6 months of year-end
- Maximum 15 months gap allowed between two AGMs
Listed companies must also follow SEBI’s guidelines and inform the stock exchange.
Who Attends an AGM?
- Board of Directors
- Shareholders (can vote)
- Auditors
- Top company executives
Shareholders can attend physically or virtually (as per rules) and ask questions or vote on resolutions.
Real-Life Example
Say you’re a shareholder in a listed company like Tata Motors. Each year, you get an invitation to their AGM. You join online or in-person, hear about the company’s yearly performance, and vote on matters like director re-election and dividend payout.
Quick Summary
| Feature | Details |
|---|---|
| Full Form | Annual General Meeting |
| Held by | Companies (except OPCs) |
| Frequency | Once a year |
| Main Goal | Share performance, take approvals |
| Who Attends | Shareholders, directors, auditors |
| Legal Requirement | Yes, under Companies Act 2013 |
Final Thought
An AGM is more than a legal formality. It’s the company’s way of staying transparent and involving shareholders in important decisions. If you own shares—even a few—you have the right to attend, ask, and vote.
