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What is Annual General Meeting?
An Annual General Meeting (AGM) is an event held by a company that presents its financial statements, reviews the past year’s activities, and outlines the plans and goals for the coming year. AGMs are held once a year, usually in the spring or summer, and are attended by the company’s shareholders.
The purpose of the AGM is to update shareholders on the financial and operational performance of the company. A company may also use the AGM to present its future strategies and plans and discuss issues such as dividend payments and other matters of importance to shareholders.
At the AGM, shareholders are given a chance to ask questions, voice their opinions, and suggest topics for discussion. The board of directors may also be required to answer questions and provide clarifications regarding the company’s operations. The board of directors also has the opportunity to present its case for any proposed changes in the company’s structure or governance.
At the end of the session, the board of directors will vote on resolutions proposed by the shareholders.
What is Statutory Meeting?
A statutory meeting is an annual gathering of the shareholders of a company. It is a legal requirement in most countries and is held to discuss the company’s financial affairs. The meeting provides a platform for shareholders to voice their opinions and ask questions about the company’s operations and performance.
The statutory meeting is usually held within six months of the company’s financial year-end. At the meeting, the directors must report the company’s performance to the shareholders during the year. This report should include a balance sheet profit and & loss statement and an explanation of any significant changes in the company’s financial position.
The directors must also explain any significant decisions the board took during the year. The shareholders can then ask questions about the report and voice any concerns. In some cases, the shareholders may also vote on some issues, such as the appointment of directors or changes to the company’s Articles of Association.
The statutory meeting is an important event for the company and its shareholders. It provides shareholders with the opportunity to get a better understanding of the company’s financial position and performance, as well as the opportunity to raise any issues or concerns they may have. It ensures that the company is operating in a transparent and accountable manner.
Difference Between Annual General Meeting and Statutory Meeting
- Annual General Meetings have a more flexible agenda than Statutory Meetings, which are required to discuss specific topics.
- Annual General Meetings generally have voting rights, while Statutory Meetings do not.
- Annual General Meetings can be represented by proxies, while Statutory Meetings cannot.
- Annual General Meetings require 21 days’ notice, while Statutory Meetings require 14 days’ notice.
- Minutes must be taken for both Annual General Meetings and Statutory Meetings.
Comparison Between Annual General Meeting and Statutory Meeting
|Parameters of Comparison||Annual General Meeting||Statutory Meeting|
|Frequency||Annual General Meetings are held annually.||Statutory Meetings are held at least twice per year.|
|Attendees||Annual General Meetings can include all members.||Statutory Meetings are only for members of the company.|
|Quorum||Annual General Meetings require a quorum of the majority of members.||Statutory Meetings require only a simple majority.|
|Location||Annual General Meetings can be held in any location.||Statutory Meetings must be held in the company’s registered office.|
|Action||Annual General Meetings can take action.||Statutory Meetings are limited to discussion only.|