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Annual General Meeting (“AGM”) in Indonesia, Know More Today and Start Making a Proper Entrance!
If you are a shareholder, you have probably received a yearly “AGM” notice. But what is it? AGM stands for Annual General Meeting, where if you are a shareholder, you are required to attend a meeting held by the company you have invested in every year. An AGM is legally mandated under Indonesian Law. Both shareholders and company directors must hold one each recurring year. Annual General Meeting (“AGM”) in Indonesia, know more today and start making a proper entrance!
What is It AGM About?
An annual general meeting is held between the directors of a company and the shareholders. In this meeting, many matters will be discussed such as:
- Future directions
- Potential problems
- Financial statements
- The election of new directors
- Change of power
- Change of ownership of shares
And more. These meetings also provide shareholders with the opportunity to ask questions.
What Does the Process Look Like?
The meeting takes preparations mainly on the company’s end. Before a meeting can commence, many preparations will have to be made beforehand. Documents, information, statistics and reports are needed to formulate the basis of that meeting. The meeting has several steps:
- First, the company must first draft out a notice, notifying the shareholders of the meeting. This notice will include the location, time and date where the meeting will be held. This notice can be transmitted electronically as well, via email. In some instances, shareholders also reserve the rights themselves to call for an AGM.
- The company will also need to get all the details ready, as mentioned before.
- When the date arrives, the meeting will commence, and the directors will present all the relevant reports to the shareholders. This meeting will cover many things that will be discussed later.
- A minute is recorded and filed accordingly. The minute will also be used for future AGM as reference.
What is Discussed in an AGM?
The following are some of the potential topics that will be discussed in an AGM:
- The minute from the last AGM.
They will be approved by the shareholders and presented once more.
- Annual financial statements.
This financial statement will encompass all the financial development of a company. The shareholders must also approve these statements.
- Ratification or approval of the director’s actions.
The shareholders can express their satisfaction with specific actions taken by the company’s directors over the previous year. This can include the directors’ remuneration report and policies, the appointment of auditors and the analysis of the remunerations of the company’s directors and auditors.
- Voting of new directors.
The shareholders and other relevant members will also take this chance to elect new directors when the need arises.
- Dividends payment.
Dividends owed to the shareholders and other parties will be declared.
The shareholders may inquire more about the process of auditing, whether it was done properly or otherwise.
Other Important Details
Here are a few details that you would benefit from knowing.
- If you cannot attend an AGM physically, you can do so by proxy.
- The directors mentioned are not conventional, but nominee directors. These are the directors that the shareholders can potentially select based on performance. You can also hire a corporate service provider to help you assess which individual is right for the job.
- It is essential to review how auditing was done to avoid fraud.
There you have it, Annual General Meeting (“AGM”) in Indonesia made easy!