What is an Annual General Meeting (AGM)? (Overview, Definition, and Purpose)

Members of a board of directors participate in different types of meetings to help the board fulfill its governance responsibilities, provide strategic oversight, and ensure the organization operates effectively. 

For example, an annual general meeting (AGM) provides an opportunity for the board of directors and shareholders to come together, review the company’s performance, and discuss its future direction.

Read on to learn more about the necessary steps for hosting an AGM, see a sample AGM template, and discover how board management software helps organizations optimize board governance. 

What is an Annual General Meeting?

An AGM (also known as an annual shareholder meeting) is a yearly meeting between shareholders and board members where they gather to: 

• Discuss business matters
• Review financial statements
• Address resolutions
• Elect or remove board directors
• Vote on organizational issues

   

During the meeting, shareholders gain a greater understanding of the organization’s performance via an annual board report. AGMs are mandatory for public and private companies and all stakeholders must receive an invitation to the meeting. 

How to Run an Annual General Meeting

Like any meeting, a successful AGM requires intention, collaboration, and trust. Here are some tips on running an effective AGM: 

1. Plan and Prepare

The first step is to build a meeting agenda outline with key topics so attendees know what to expect from discussions and can better prepare for their role in the meeting. You should also test any equipment you plan to use during the presentation to minimize disruptions. 

If you host the meeting in-person, be sure to pick a venue that’s easily accessible for all parties, offers some privacy, and prioritizes document security. 

If the AGM takes place online, find a software solution that offers the ability to vote on initiatives, provides robust data security, and integrates with other conferencing or management tools. Also take some time to test the virtual capacity of the technology to confirm it can handle the maximum number of attendees. 

2. Keep the Meeting Short

To help board members and shareholders stay engaged throughout proceedings, schedule meetings with a shorter time frame and stick to the agenda items. If the meeting needs to run longer, split the agenda into different sessions with formal breaks where attendees can collect their thoughts and regroup. 

3. Provide Meeting Materials in Advance

Distribute the board pack at least a week in advance of the meeting to give stakeholders a reasonable amount of time to review its contents. This ensures board members and shareholders are fully aware of meeting topics and can participate in a more thoughtful manner.  

The contents of a board pack vary among organizations, but common documents include the meeting agenda, previous meeting minutes, financial statements, the CEO report, board committee reports, and background information on meeting topics. 

Sample Annual General Meeting Agenda

The meeting agenda sets the table for the AGM by explaining the purpose of the meeting and providing a roadmap to keep conversations focused and efficient. The annual meeting agenda typically includes the following segments: 

• Call to Order: The meeting chair formally starts the meeting and sets expectations for attendees. For example, the chair may specify if each board member will be given a specific time to speak or if the conversation should flow more naturally.
• Reading and Approval of Previous Meeting Minutes: Each attendee reviews and approves the meeting minutes from the last meeting. Any lingering problems from the previous AGM should be addressed before moving on to new topics. 
• Presentation of Annual Financial Report: The board of directors presents the annual financial statements to shareholders. The board chair will declare the annual profits during this stage. To streamline the meeting’s flow and encourage more constructive dialogue, make sure to distribute the report in advance of the meeting.
• Approval of Directors’ Report: The board provides a summary of the organization’s actions, decisions, and outcomes over the past year. Shareholders can then ratify the report or raise any concerns they have about the state of the company. 
• Election of New Board Members: New board members are typically elected during an annual general meeting. 
• Changes to the Company’s Constitution: Shareholders and directors can set motions to revise policies outlined in the company’s articles of association. Proposed changes will go to a vote before the changes take effect. 
• Resolutions: The last step is for attendees to discuss new resolutions. The resolution should either be voted on by present parties or postponed for another meeting if it cannot be addressed at the moment. 

Master Meeting Agendas with OnBoard

Organizing and running an annual general meeting can be a complicated exercise, but leveraging board portal tools makes it easier to securely distribute board materials while enhancing collaboration. 

Additional OnBoard software features include:

• Agenda and Meeting Management
• Document Management and Secure Storage
• Secure Messaging and Collaboration Tools
• Voting and Resolutions
• Compliance and Reporting Tools
• Integrations with Microsoft Teams, Zoom, and Google Workspace
  
  

Are you evaluating board management tools? Download our Vendor Comparison Worksheet for tips and advice on how to assess board management software providers and find the right solution for your organization.