Annual General Meeting
An Annual General Meeting (AGM) is a mandatory yearly meeting of a company's shareholders, required under the Companies Act, 2013, at which the company presents its audited financial statements, declares dividends, appoints directors and auditors, and transacts other ordinary business.
The Annual General Meeting (AGM) is the most important regular interface between a listed company and its shareholders. Under Section 96 of the Companies Act, 2013, every company other than a one-person company must hold an AGM each year, within six months from the end of the financial year. For most Indian companies with a March 31 financial year-end, this means the AGM must be held by September 30.
The ordinary business transacted at an AGM includes consideration and adoption of the audited financial statements, declaration of dividend (if any), appointment of retiring directors, and appointment or re-appointment of auditors. Special business — such as approval of material related party transactions, executive remuneration beyond prescribed limits, or changes to the memorandum or articles of association — can also be transacted at the AGM with appropriate notice.
SEBI's LODR Regulations prescribe additional requirements for listed companies. The top 100 listed companies by market capitalisation are required to hold their AGM within 60 days from the end of the financial year, i.e., by May 31. All listed companies must provide e-voting facilities to their shareholders for resolutions placed at the AGM, ensuring that shareholders who cannot physically attend can still exercise their voting rights.
The COVID-19 pandemic accelerated the transition to virtual and hybrid AGMs in India, with MCA and SEBI permitting companies to hold AGMs through video conferencing (VC) or other audio-visual means (OAVM). While physical AGMs have resumed, the experience has led to an increased acceptance of hybrid formats that allow wider participation.
For investors, AGMs are an opportunity to engage directly with management and the board. Asking questions about financial performance, strategy, governance concerns, and related party transactions is a legitimate exercise of shareholder rights. Institutional shareholders increasingly use AGMs to flag governance concerns and vote against resolutions they consider against the interests of minority shareholders.