All limited companies need to conduct an Annual General Meeting (AGM) in each financial year, subjected to some limited exceptions.
For private companies, an AGM shall be conducted within 9 months after the end of accounting reference period. for public companies, it’s 6 months.
Before conducting any General Meeting or Annual General Meeting, a notice of a shareholders meeting must be sent to all shareholders who entitled to receive notice in accordance with the Companies Ordinance. For AGM, the notice period is 21 days in advance. For General Meeting, the notice period is 14 days in advance.
For certain special matters such as removal of directors, a special notice of not less than 28 days before the General Meeting.
The notice must include the place, day, and time of meeting, as well as nature of the business to be dealt with in the General Meeting. The quorum required for a General Meeting is two members present in person or by proxy.
The main decisions which are normally made by shareholders in an AGM are as follows:
Appointment and removal of directors
Decide the remuneration of directors
Appointment, removal and remuneration of the auditor
Approval of the directors’ report, the auditor’s report and the annual financial accounts.
Declaration of final dividends.