What is an annual general meeting?

Definition

An annual general meeting (AGM) means a formal yearly meeting of a company’s shareholders or members, where the board presents the company’s financial performance, elects or reappoints directors, and addresses other important governance matters.

Most jurisdictions legally require certain types of companies to hold AGMs on a regular schedule to maintain transparency and shareholder rights.

Purpose of annual general meeting

The purpose of an annual general meeting is to:

• Review and approve the company’s financial statements
• Vote on dividends, director appointments, or reappointments
• Discuss major strategic decisions or business performance
• Allow shareholders to ask questions and raise concerns
• Maintain legal compliance with corporate governance requirements

AGMs promote accountability by ensuring that the board reports to shareholders at least once a year.

How to hold an annual general meeting

Companies typically hold AGMs either in person, virtually, or in a hybrid format. The process often involves:

• Setting a date within the legally required timeframe
• Preparing financial reports, director nominations, and agenda items
• Notifying shareholders with the appropriate advance notice
• Conducting the meeting, managing votes, and recording minutes

Many organizations use digital platforms or board portals to distribute documents, manage attendance, and streamline virtual AGMs.

When to hold annual general meeting

The timing of an AGM is usually defined by law or the company’s bylaws. For example, in many regions, a company must hold its AGM within six months of the end of its financial year.

Delays may result in regulatory penalties or reputational damage, so boards are expected to schedule AGMs with careful attention to compliance deadlines.

How many days’ notice for annual general meeting?

The required notice period can vary by jurisdiction. A common standard is:

• 21 clear days’ notice for public companies
• 14 days’ notice for private companies (unless stated otherwise in the bylaws)

Notices must clearly include the time, date, location (or access link), and the agenda. Failure to provide proper notice can invalidate decisions made during the AGM.

Quick summary

• An annual general meeting means a yearly meeting where shareholders review financials and vote on key matters
• The purpose of an AGM is transparency, compliance, and accountability
• Companies must give sufficient notice—usually 14–21 days—and prepare materials in advance
• AGMs can be held in person, virtually, or in a hybrid format

Related terms