What Is an Annual General Meeting (AGM) In Singapore.

For all Singapore companies, an Annual General Meeting (AGM) is one of the compliance requirements. An annual meeting is required by law for a corporation to keep its shareholders informed about the firm's financial performance, business health, and development. Shareholders are given the ability to ask questions, vote, and make vitally important decisions.

Section 175 of the Companies Act requires any business with a Financial Year End (FYE) ending before 31 August 2018 to have its first AGM within 18 months after establishment. Subsequent meetings must be conducted every calendar year, with no more than 15 months between such AGMs.

At least 14 days before the AGM, the firm must provide a written notice to shareholders (including the date, time, and location of the AGM, as well as the specifics of the resolution to be carried).

AGMs will be conducted for firms with a financial year ending on or after August 31, 2018:

• For listed companies: within four months after the financial year-end.
• For any other company: within six months after the financial year-end.

The objective of the AGM is to verify that the business complies with all legal requirements, such as the company's financial statements, the presentation of a new auditor, and so on, to make crucial decisions to safeguard the company's welfare and to inform shareholders on the company's operations.

Here are the two types of objectives of AGM Singapore:

• To present and get approval for the audited accounts from the company's members.
• The new members of the Board of Directors will be elected by a vote.
• To choose auditors for the following calendar year.
• To declare and confirm the company's dividends.

• To resolve any disputes or disagreements presented by the corporate entity's investors.

During an AGM, the company delivers its financial accounts to members and answers any questions about the company.

AGMs are led by the chairman of the meeting, who is often the chairman of the board of directors. However, if your company's Constitution does not provide for a chairman to preside over the meeting, any member might be chosen to the position during the AGM.

The corporate secretary – or a secretarial service – is responsible for preparing any necessary documentation for the AGM (e.g., the company Constitution).

When holding your AGM, please take note of the following:

1) Aside from ordinary business, the meeting should only consider resolutions for which notice has been provided.

Ordinary business is specified in your company's Articles and may contain topics such as:

• Dividend pay-outs
• Appointment of directors/auditors
• Remuneration for senior executives and directors
• Consideration of accounts and balance sheets

Other subjects may be considered a special business. Any resolutions passed at the meeting that were not related to routine business should have been stated in the AGM Notice.

2) Make sure you meet the quorum

The quorum is the minimum number of members who must attend the AGM for it to be legitimate. If your company's Constitution does not specify a quorum, the minimum number is two members (or their proxies).

3) Ensure proxies are appropriately appointed.

A proxy may attend and vote at the AGM on behalf of a member. The proxy does not have to be a corporate employee.

The mechanism for appointing a proxy should be included in your company's Constitution; the procedure may apply to all meetings or only the present meeting.

Check to see whether members utilizing proxies followed the instructions.

4) Ensure the proper laying of accounts.

Directors are in charge of presenting documents such as:

• Financial statements
• Balance sheets
• Director’s report
• Auditor’s report (if applicable)

These documents should also be delivered with the AGM Notice at least 14 days before the meeting. Members will be able to prepare questions for the directors as a result of this.

5) Ensure proper voting on various resolutions.

The voting rights of your company's members, as well as the voting methods, are covered in your company's Constitution.

Unless there are extraordinary circumstances, all members have the right to vote (e.g., a member who has not paid up for shares issued to them, when notified by the company, may be denied the right the vote).

Voting is done by a show of hands or a poll; however, proxies usually are not permitted to vote through a show of hands unless the company's Constitution allows it.

6) Closing your AGM

Traditionally, AGMs were held in person, but due to the COVID-19 pandemic, many AGMs are now convened remotely.