One of the key events in the company’s life is the General meeting. We have several types of general meetings depending on certain criteria that we will discuss in this article:
Annual General Meeting
In this meeting, the company would propose to its shareholders, the main resolutions or decisions, scheduled for the next financial year. This meeting is generally split into two sections:
The ordinary part of the General Meeting, is dedicated to resolutions, relevant to the company’s accounts, such as dividend distributions, changes to the company’s accounts, funds transfers from one account to another, renewal of directorship and appointments. Here is an example:
The Ordinary part is important is no Annual General Meeting can be held without it.
The extraordinary part is optional, but still exists in most of the cases. This part is dedicated to resolutions that are related to corporate actions events. The Board of directors would be given authorization, to operate on the share capital of the company, through multiple events.
Reason for the General Meeting
The meeting of shareholders is an extreme obligation for any public company. As a result, every corporate action, such as (Rights issue, Consolidation, Further Public Offering) needs to be approved first, by the shareholders in the meeting prior to its implementation.
Further more, the company has also an obligation, to hold an Annual Meeting to discuss important topics, and present its consolidated financial statements for the last financial year.
How it’s done ?
The company would send an invitation to every shareholder, via emails or regular mail. An official meeting document is also published, in the main financial news websites such as marketwatch, bloomberg, globalnewwire
Critical fields for this event
This is a simple corporate action, and the most common details involved are:
- Meeting type: Annual, ordinary, extraordinary, special…