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BUSINESS TIPS

Matters Reserved for Annual General Meetings (AGMs)

Under the Companies Act 2006 it is a requirement for all public limited companies to hold an Annual General Meeting (AGM) within six months of the company’s accounting reference date. It is no longer a legal requirement for private companies to hold an AGM, however the company’s Articles of Association may still specify that an AGM must be held. If this is the case, the directors are still responsible for calling an AGM until the provision within the Articles is changed.

The business of an AGM is not determined by law, however routine business for the majority of companies that are still required to hold one includes:

  • Receiving the accounts for the year
  • Declaring a final dividend
  • Electing new directors and reappointing directors where retirement by rotation applies as per the UK Corporate Governance Code
  • Reappointing the company’s auditors
  • Granting directors the authority to allot shares
  • Disapplying pre-emption rights

An AGM can also be used to make decisions that could be made in a separate general meeting, for example altering the company’s Articles of Association or changing the company’s name. Often this may be easier, as the shareholders will already be gathered to approve the routine business.

If you require assistance with the implementation of your AGM or with company secretarial services please contact us for more information on 020 8429 9245 or at info@wisteria.co.uk.