Movie Case Study
Rai Bahadur Singh (played by Kabir Bedi) is the owner of a pharma company. He also owns a hotel business. He brings his son Karan (played by Shah Rukh Khan) to make him the successor in his family business. Meanwhile, due to a mishap, the company’s executive informs Mr. Rai that they might lose their license in the upcoming annual general meeting. Learning Perspectives will explore the meaning of the Annual general meeting in this blog.
What is the Annual General Meeting (AGM)?
AGM is one of the important meetings for the company. As the name suggests, it is annual or yearly in nature i.e. it is conducted once a year. It is the gathering of shareholders and the board of directors of the company. According to the Companies Act, 2013, it is mandatory to hold an annual general meeting.
Why is AGM conducted?
The annual general meeting is usually conducted to present the financial statements of the company. Special issues might be discussed too, similar to the scene that you saw, the executive is worried about their license being canceled in the meeting because of a mishap that has occurred.
A company can have an agenda to elect the board of directors for the next year.
Conditions for holding AGM
- A company must hold AGM within six months of the end of the financial year.
- The time gap between two AGMs should not be more than fifteen months.
- If the company is holding its first AGM, then the company can hold its first AGM within the first nine months from the end of the first financial year.