Table of Contents
What is Annual General Meeting?
An Annual General Meeting is a session of a company or organization’s shareholders, members, or employees, held annually. During the AGM, the board of directors and senior officers present a report of the company’s activities and financial position over the previous year, including a review of the goals and objectives of the company.
The primary purpose of an AGM is to review the organization’s performance over the past year and to provide a platform for members to express their views on the management and strategy of the organization. AGMs are also used to appoint board members, approve financial statements, and discuss changes to the organization’s by-laws or other essential documents.
The meeting begins with the board of directors introducing the agenda and any critical topics for discussion. After the opening remarks, the board of directors presents their report, which includes a review of the company’s financial performance and achievements over the past year.
Members then can vote on any proposed changes to the board of directors, the by-laws, or other vital documents. Members may also vote on financial statements, resolutions, and other matters.
What is Board Meeting?
A board meeting is a gathering of a company’s board of directors members to discuss and review the company’s activities. It is held regularly, such as quarterly or annually. It is intended to provide a forum for the board to review the company’s performance, present important information, and make decisions about critical issues that affect the company.
Board meetings begin with a review of the agenda for the meeting. The plan outlines the topics that will be discussed and the order in which they will be addressed. It also identifies any items that require the board’s approval or decision.
Once the agenda is reviewed, the board generally moves on to the main business of the meeting. It may include reviewing the company’s financial performance, new business opportunities, or presentations from various departments. At the end of the session, the board reviews any decisions and confirms any actions to be taken.
Board meetings provide an essential forum for the board to review the company’s performance, discuss and debate critical issues, and make decisions that will shape the company’s future.
Difference Between Annual General Meeting and Board Meeting
- The AGM is held once a year, while Board Meetings may be held more frequently, such as monthly or quarterly.
- Voting at the AGM is done by a show of hands, while voting at a Board Meeting is done by a majority or unanimous vote.
- A quorum may be required to conduct business at an AGM, while a quorum is not needed for a Board Meeting.
- Shareholders may participate in an AGM but do not have decision-making power, while Board Members have decision-making power in Board Meetings.
- Minutes of the AGM are kept as a record, while minutes of a Board Meeting are kept confidential.
Comparison Between Annual General Meeting and Board Meeting
|Parameters of comparison||Annual General Meeting||Board Meeting|
|Purpose||To report on the company’s financial performance.||To discuss and make decisions about the management and direction of the company.|
|Attendees||Include shareholders and their representatives.||It includes the Board of Directors and other executives.|
|Location||Conference hall or auditorium.||Private office or boardroom.|
|Agenda||Involves financial information||It may include a variety of topics, such as strategy, operations, investments, and other decisions.|
|Decisions||Involves the approval of financial statements and the election of new board members.||It is used to make decisions on all aspects of the company’s management and direction.|