An annual general meeting (AGM) is a yearly meeting of Members. At the AGM, the directors of the company present an annual report, which contains information for Members about the company’s performance and strategy. Members vote on current issues, such as appointments to the company's board of directors, approval of changes to the company’s By-laws (if any) and selection of auditors.
Members who do not or cannot attend the meeting in person may vote by proxy, which can be done online or by mail.
The holding of an AGM is the principal right of the company's Members. If a company needs to resolve a problem between annual general meetings, it may call an extraordinary general meeting.
The Corporations Act contains the rules governing an AGM. For example, there are provisions detailing how far in advance Members must be notified of when the AGM will be held and how to vote by proxy.
The following items, by law, must be discussed at the AGM:
- Minutes of the Previous Meeting: The minutes of the previous year's AGM must be presented and approved.
- Financial Statements: The company presents its annual financial statements to its Members.
- Election of the Board of Directors: The Members elect or re-elect the board of directors for the term as set out in the company’s By-law.
Several other elements may be added to the agenda. Often, the company's directors and executives use the AGM as an opportunity to share their vision of the company's future with the Members.