An Annual General Meeting (AGM) is the yearly meeting of a company's shareholders, required by law, where they review the company's performance, approve its financial statements and vote on key matters such as dividends and the appointment of directors and auditors.
What an AGM is
Shareholders own a company but do not run it day to day. The AGM is their main formal opportunity each year to hear from the board and management, ask questions and exercise their voting rights. It is a key part of corporate accountability.
How it works in India
Under the Companies Act, 2013, every company other than a One Person Company must hold an AGM each year. For most companies with a March year-end, it must be held within six months of the end of the financial year, typically by 30 September, and no more than 15 months may pass between two AGMs. Shareholders must receive notice at least 21 clear days in advance, along with the annual report.
Ordinary business at an AGM includes adopting the financial statements, declaring dividends, reappointing directors who retire by rotation, and appointing auditors and fixing their pay. Any other item is special business, explained in the notice. Listed companies must offer electronic voting (e-voting), so shareholders can vote without attending, and many AGMs are now held through video conferencing.
A simple example
A listed company with a March year-end sends its annual report and AGM notice in late July. The notice lists resolutions to approve the accounts, declare a final dividend of ₹6 per share, reappoint a director and approve a related-party transaction. Shareholders vote online during the e-voting period, and some attend the AGM by video to ask the chairman about margins and debt. Results of the vote are filed with the exchanges shortly after.
Why it matters for investors
The AGM is a chance to hold management accountable, vote on important decisions and learn about the business directly from its leaders. Voting results, especially when many shareholders vote against a resolution, can signal governance concerns.
AGM versus EGM
An Extraordinary General Meeting (EGM) is called between AGMs for urgent matters that cannot wait, such as approving a major transaction or a change in the company's structure. Many companies also seek approvals through postal ballots without holding a meeting.
How to use your vote
Read the notice and annual report, focusing on resolutions about director appointments, executive pay, related-party transactions and capital raising. Proxy advisory firms publish recommendations on many listed company resolutions, which can help you understand complex items. Even small shareholders' votes count in the overall result.
What to look for in the annual report
The annual report sent before the AGM is one of the richest sources of company information. Read the chairman's letter for strategy, management discussion and analysis for business conditions, the auditor's report for any qualifications, notes on related-party transactions, and details of directors' pay. Comparing this year's report with last year's can reveal changes in tone or emphasis.
Common misconceptions
"Small shareholders don't matter at AGMs." Every vote is counted, and questions can be raised by anyone eligible.
"I must attend to vote." E-voting allows voting remotely.
"The AGM is just a formality." Resolutions can and occasionally do fail.
Frequently asked questions
When are AGMs held in India?
For March year-end companies, usually by 30 September.
What is e-voting?
Voting on resolutions online, required for listed companies.
What is an EGM?
A shareholder meeting called between AGMs for urgent matters.
Do I get the annual report?
Yes, usually by email, and it is published on company and exchange websites.
How to use this on PositoAI
Dividends declared at AGMs appear on the Actions page. Use company pages and Go Deep to review the financial history behind the numbers presented at the AGM.
Summary
An AGM is the yearly shareholder meeting where accounts are approved, dividends declared and directors and auditors appointed. In India, it must be held within six months of the year-end, usually by 30 September, with 21 days' notice. Listed companies offer e-voting, and EGMs handle urgent matters between AGMs.