AGMs are a golden opportunity for us investors to analyse the company’s management, ethics, and future goals! But, what happens in an AGM and how will it benefit us as investors?
We, shareholders, form a very crucial part of a company. When we invest our hard-earned money into a company, we pour our trust into the company’s management. As shareholders, we expect them to make rational decisions that benefit the company and us.
So, it is our right and responsibility to understand the management’s decisions and plans for the future. And hence, attending the Annual General Meeting (AGM) is a must!
Today let’s explore the essential details of what is done at the Annual General Meeting!
What is an Annual General Meeting (AGM)?
An AGM is also known as a shareholder’s meeting because on this day, the shareholders meet the board of directors and discuss important matters of the company.
What Happens in an Annual General Meeting?
1. A Review of the Past Financial Year
Here the directors of the company present an overview of how the company has performed in the past financial year by offering insights from the income statement, balance sheet, and cash flow statement.
This will help you determine how the company has been performing so far.
2. Important Announcements
At the recent AGM of Reliance Industries, Mr Mukesh Ambani announced that they will soon roll out the world’s fastest 5G network. Similarly, many companies report their future projects and new initiatives that they will be taking. This news is crucial for us investors as we get to know the future plans of the company.
3. Election of Board of Directors and Auditors
The board of directors keenly watches how the company’s management makes decisions. These decisions have a massive impact on the shares you are holding. As a shareholder, you get the right to vote for the candidate you think is best suited for the role.
Similarly, you also get to vote for the appointment of auditors.
4. Dividend payments
Dividends are the reward you get for being a loyal shareholder. Here, investors discuss with the company directors and conclude how much dividend should be paid per share for the current financial year.
5. Question and Answer Session
As a valued company shareholder, you have the right to ask questions and raise your concerns about the company. This is a golden opportunity for shareholders to understand the business’s overall health and how it is ahead of its competitors.
Should You Attend AGMs?
Yes! This is your chance to analyse the company’s ethics and morals. By attending an AGM, you are taking an active role in constructing the future of your investments.
So, the next time you get to know that the company you have invested in is holding an AGM, don’t miss the opportunity. This could be your first step towards wise investing.
