Definition of an AGM
An Annual General Meeting (AGM) is a mandatory general meeting which is often held by the shareholders of a company. During an AGM, the directors of the company are required to carry out the responsibility of presenting the report about the company’s performance and strategies. Furthermore, during an AGM, all directors who have any voting rights bestowed upon them are tasked with the responsibility of voting on current issues. They are expected to select other members of the company’s board of directors, pay any outstanding executive compensations, pay all remaining dividends, select an auditor for the company, or complete any other executive tasks which are incomplete.
On a somewhat related note, some of the directors of Indonesian companies are not conventional directors, but nominee directors instead. Should your company be in need of a nominee director, we at Paul Hype Page & Co will be willing to assist you. We will select a person who we deem to be competent and fully qualified for this important position. You can be certain that the person we select on your behalf will perform all the necessary tasks of a nominee director to the fullest extent.
Differences Between an EGM and an AGM
AGMs are not to be confused with extraordinary general meetings (EGMs). EGMs only take place when there is an urgent need to resolve a problem which must be resolved before the due date of the AGM. Unlike an AGM which is called at a planned and scheduled time, an EGM is called when there is an urgent matter which has to be addressed as soon as possible.
An EGM will require the shareholders to resolve an urgent issue which has arisen within the company. In most instances, an EGM will deal with one of the following matters: the removal of one or more of the company’s directors from the position, a legal matter that requires the immediate action of shareholders, or any time-sensitive issue which must be settled before the next AGM is to be held.
Another difference between an AGM and EGM is that AGMs can only be held during office hours and on business days while EGMs are not bound by this restriction. AGMs can only be called by the board of directors, but an EGM can also be called through the request of shareholders or a tribunal.