What is Annual General Meeting?

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Annual General Meeting (AGM) is a yearly gathering of a publicly traded company's shareholders, designed to provide shareholders with an overview of the company's annual performance, vote on the election of board members, approve financial statements, and address other significant matters. The AGM is a crucial avenue for shareholders to participate in corporate governance and decision-making. The primary agenda typically includes reviewing the company's financial reports, electing board members, selecting auditors, and discussing dividend policies, among other important issues.

Definition

The Annual General Meeting (AGM) is a yearly gathering of a company's shareholders, aimed at providing them with insights into the company's annual performance, voting on the election of board members, approving financial statements, and addressing other significant matters. The AGM is a crucial avenue for shareholders to participate in corporate governance and decision-making, with key agendas including reviewing financial reports, electing board members, selecting auditors, and discussing dividend policies.

Origin

The concept of the AGM originates from the fundamental principles of corporate governance, evolving with the development of joint-stock companies. Early joint-stock companies began holding regular shareholder meetings in the late 19th and early 20th centuries to ensure shareholders' rights to information and participation in company affairs.

Categories and Features

AGMs are typically categorized into ordinary and extraordinary general meetings. Ordinary AGMs are routine annual meetings dealing with regular business such as financial reports and board elections. Extraordinary general meetings are convened as needed to address urgent or special issues. Features of AGMs include high transparency, significant shareholder participation, and a substantial impact on corporate governance.

Case Studies

For instance, Apple Inc.'s AGM is usually held early in the year, where shareholders review the company's annual financial performance and vote on board member elections. Another example is Tesla, Inc., where the AGM not only discusses financial results but also covers the company's future strategic direction and innovation plans.

Common Issues

Common issues investors face when participating in AGMs include how to effectively exercise voting rights, understanding the meeting agenda, and evaluating the performance of board members. It is generally recommended that investors read the meeting materials in advance and actively ask questions during the meeting to gain more information.

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Liquidity Crisis

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Liquidity Event

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