How often and when must companies hold an annual general meeting?

According to section 250N of the Corporations Act, public companies must hold an annual general meeting (AGM) within 18 months after their registration. After the first meeting all subsequent meetings should be held at least once every calendar year and within five months following the end of its financial year.

What is the purpose of holding an annual general meeting?

The main aim of holding an AGM is to give an opportunity to shareholders to query and receive feedback about the performance of the company from the directors. During the meeting the company’s financial statements are reviewed, vacancies on the board of directors are filled, appointment of auditors takes place and dividends are declared.

How is voting conducted at an annual general meeting?

Voting can either be conducted simply by a show of hands or through a poll. Shareholders are entitled one vote for each share held, which implies that the number of votes is directly proportional to the number of shares held by an individual shareholder. For one to be eligible to vote, their name must appear in the register of members (Lipton, Herzberg, & Welsh, 2014). The document contains all the shareholders with voting rights and every shareholder is entitled to scrutinize it.

If shareholders cannot attend an AGM, do they still have the right to vote, and if so what happens to the shareholders vote?

If a person fails to attend the AGM, they still have a right to speak and vote at the meeting through a proxy, who is entitled to the same rights as the actual shareholder as far as the meeting is concerned.

References

Commonwealth Consolidated Acts. (2001). CORPORATIONS ACT 2001 – SECT 250N. Retrieved from Commonwealth Consolidated Acts: http://www.austlii.edu.au/au/legis/cth/consol_act/ca2001172/s250n.html

Lipton, P., Herzberg, A., & Welsh, M. (2014). Understanding company law (17 ed.). Pyrmont, N.S.W.: Thomson Reuters.