How Indonesian Companies Conduct AGMs
When an Indonesian company conducts an AGM, it must first give ample time for the directors of the company to have a meeting before the AGM begins. This preliminary meeting will allows the company’s directors to discuss the future direction of the company. This will subsequently provide them with an ample amount of time for the solving of any problems within the company. It is during such meetings that the directors of the company begin the processing of deciding who should be selected as the newest members of the Indonesian company’s board of directors.
Shareholders who are unable to attend the AGM at the time when it is held are permitted to attend it by proxy. Shareholders who attend it by proxy may either do so online or via email. All shareholders who choose to do so must, of course, be certain to listen to the agenda and participate actively during the session. During the AGM, there will be time allocated for the shareholders to ask any question to the directors of the company. The shareholders who would like to raise any issue with the directors and management of the company may take advantage of the opportunity to ask questions to the directors.
Before an AGM in Indonesia may begin, the company must inform all shareholders who will attend the AGM about the date, time, and location of the AGM. Other important information expected to be mentioned include details about any new directors or shareholders.
Topics Which Must Be Discussed During an Indonesian Company’s AGM
Minutes of the Previous AGM
The previous AGM’s minutes must be presented and approved accordingly before the agenda of the AGM to be held may take effect.
The management of the company must present its annual financial statements for approval by the shareholders.
Ratification of Directors’ Actions
During an AGM of an Indonesian company, the shareholders of the company are expected to ratify and approve the decisions made by the board of directors over the previous year. Such actions usually include the payment of dividends. Furthermore, during the AGM, the shareholders are expected to select the newest members of the board of directors for the company’s future management and operations. AGMs usually serve as a period during which the executives and directors are expected to share their vision of the company’s future with the company’s shareholders.
Several other matters which are sometimes discussed during an AGM of an Indonesian company include the approval of the directors’ remuneration report and policies, the appointing of the companies’ auditors, and the analysis of the remunerations of the company’s directors and auditors. An AGM also provides a platform for the shareholder to grant authority to the directors for the allocation of new shares. It is during this time that the shareholders may choose to propose a general meeting other than an AGM; such a meeting would subsequently take place at a time and place of the shareholders’ choice.
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People in an Indonesian Company Who Are Allowed to Call an AGM
Members of the board of directors are granted the right to call an AGM in any Indonesian company. However, shareholders who have a certain percentage of voting rights might choose to request that an AGM be held. Regardless of who calls for the AGM to be held, ample notice must be provided to those who are to attend the AGM before it is held.
Information to Be Included in the AGM Notice
When an AGM notice is released, there is certain information which ought to be include for the knowledge of the shareholders. Among the information to be included are the date and time during which the AGM is to held. The place where the meeting will be held must be clearly indicated, as must the general nature of the meeting. The notice of the AGM may be sent to the shareholders either in the form of writing or electronically through an email or a website post.
It can thus be concluded that AGMs are important for key figures in any company in Indonesia to meet and discuss how the company should handle any future issues which may arise at any time. Through the discussions which take place at AGMs, these key figures in the company will be able to thoroughly discuss the company’s affairs as well as air all their dissatisfactions and concerns about the company’s performance if they have any. AGMs also represent an excellent opportunity to inspect the auditors and books of accounts to ensure the future financial stability of the company.