Annual General Meeting-Everything You Need To Know

Firmus Advisory


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Annual General Meeting (AGM) facilitates communication between a company's shareholders and its management. It ensures transparency, accountability, and compliance...
Ghana Corporate/Commercial Law
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Annual General Meeting (AGM) facilitates communication between a company's shareholders and its management. It ensures transparency, accountability, and compliance with legal requirements. According to the Companies Act 2019 (Act 992) of Ghana, specific guidelines and procedures govern the organization of AGMs. Quoting directly from the Act, Section 157 outlines some of these guidelines and procedures:

  1. An annual general meeting of a company shall be held in every calendar year and not more than fifteen months after the holding of the last preceding annual general meeting.
  2. Every company shall hold its first annual general meeting within eighteen months after the date of its incorporation.
  3. Notice of every annual general meeting shall be given to every member of the company, and every debenture holder of the company, not less than twenty-one days before the meeting.
  4. The notice of the meeting shall specify the place, the day and the hour of the meeting and, in the case of special business, the general nature of that business.
  5. The notice shall be given to the members of the company, and to the debenture holders of the company by serving it on them individually or by posting it to them at their registered address, or, if a member has no registered address within Ghana, to the address, if any, within Ghana supplied by him to the company for giving of notices to him.
  6. The accidental omission to give notice of a meeting to, or the non-receipt of notice of a meeting by, any member of a company or any debenture holder of a company shall not invalidate the proceedings at the meeting.
  7. The members may specify the manner in which the notice of the meeting shall be given to them.

These guidelines and procedures ensure that AGMs are conducted efficiently and effectively, allowing shareholders to participate in decision-making processes, receive updates on the company's performance, and hold management accountable. By adhering to the provisions outlined in the Companies Act 2019, companies can uphold the principles of corporate governance and maintain trust and confidence among stakeholders.

Steps to Organize Annual General Meeting

The Annual General Meeting (AGM) serves as a cornerstone of corporate governance, offering shareholders a vital platform for accountability, transparency, and decision-making within a company. It provides shareholders with the opportunity to hold the company's management accountable for their actions, ask questions about performance and strategy, and review financial statements to assess the company's health. Additionally, AGMs facilitate important decision-making processes, including the election of directors, appointment of auditors, and approval of dividends. Through presentations and discussions, AGMs also promote communication between management and shareholders, fostering engagement and dialogue. Furthermore, AGMs fulfill legal requirements, ensuring compliance with company law regulations. Overall, AGMs play a crucial role in promoting effective corporate governance, shareholder participation, and transparency, contributing to the long-term success and sustainability of companies.

Here are the typical steps involved in conducting an Annual General Meeting:

Step 1- Preparation

  • The board secretary in consultation with the Board Chair determine the date, time, and location of the AGM well in advance, ensuring compliance with any legal requirements and giving shareholders notice.
  • Prepare and distribute the notice of the meeting to shareholders, including the agenda, details on how to participate (in-person or remotely), and any proposed resolutions.
  • Gather materials: Prepare any documents, reports, financial statements, or other materials that will be presented or distributed during the meeting.

Step 2 – Opening the Meeting

  • The chairperson calls the meeting to order at the scheduled time.
  • Verification of quorum: The company secretary confirms that a quorum of shareholders is present, either in person or through proxies.

Step 3 – Formal Proceedings

  • Chairperson's welcome and introduction: The chairperson provides a brief welcome address, outlines the agenda.
  • Presentation of financial statements: The company's financial statements, including the balance sheet, income statement, and cash flow statement, are presented to shareholders for approval.
  • Reports from directors and auditors: Directors may provide reports on the company's performance, strategies, and future outlook. The auditors may also present their report on the financial statements.
  • Questions and answers: Shareholders have the opportunity to ask questions about the company's performance, financial statements, or any other matters relevant to the business.
  • Voting on resolutions: Shareholders vote on resolutions proposed during the meeting, such as the election of directors, appointment of auditors, approval of executive compensation, or other matters requiring shareholder approval.

Step 4 – New Business

Shareholders may propose new resolutions or raise additional matters for discussion, subject to any procedural rules or requirements.

Step 5 – Closing the Meeting

  • Once all agenda items have been addressed and there is no further business to discuss, the chairperson formally closes the meeting.
  • A motion to close is typically made and seconded before a vote is taken to officially end the meeting.

Post-Meeting Tasks

  • Minutes preparation: The company secretary prepares official minutes summarizing the discussions, decisions, and voting results of the AGM.

Preparing minutes of a meeting is a meticulous process crucial for accurately documenting discussions, decisions, and post-meeting actions to be undertaken. The responsibility is assigned to the company secretary. The process begins with capturing essential details such as the meeting's date, time, location, and the names of attendees, ensuring to note any apologies for absence and the achievement of a quorum. Following the agenda, discussions are summarized accurately, highlighting key points, arguments, and decisions made, while avoiding verbatim transcription except for critical statements or motions. Decisions and resolutions are documented clearly, including the exact wording of motions and resolutions along with the names of movers and seconders. Action items and follow-up tasks are recorded, specifying responsibilities, deadlines, and reporting requirements. Once the minutes are drafted, they undergo a thorough review for accuracy, completeness, and clarity before being presented to the chairperson for approval. Upon approval, finalized minutes are distributed to all participants, stored securely, and filed in accordance with organizational policies and legal requirements.

Subsequently, the implementation of action items is monitored, with updates provided in subsequent meetings to track progress and ensure accountability.

  • Filing requirements: Any required filings, such as the submission of financial statements or resolutions, are completed in accordance with regulatory requirements.
  • Distribution of minutes: Once approved, the minutes are distributed to shareholders and other relevant stakeholders, and any follow-up actions are documented and assigned.

Importance of Proxy Vote

The use of proxies during Board Meetings and Annual General Meetings (AGMs) serves a crucial purpose in ensuring efficient decision-making and representation, particularly when shareholders or directors are unable to attend meetings in person.

The Companies Act 2019 (Act 992) of Ghana, Section 160 addresses the use of proxies:

"A member of a company entitled to attend and vote at a meeting of the company or at a meeting of any class of members of the company shall be entitled to appoint another person to attend and vote at the meeting in the member's stead."

"A proxy appointed to attend and vote at a meeting of a company shall have the same rights as the member appointing him to attend and vote at the meeting, including the right to speak at the meeting."

"A proxy need not be a member of the company."

These provisions underscore the significance of proxies in facilitating shareholder participation and representation at meetings. Proxies allow shareholders who are unable to attend AGMs or Board Meetings in person to still have their voices heard and their votes counted on important matters affecting the company. This is particularly important in cases where shareholders may reside far from the meeting location or have other commitments preventing their physical presence.

Moreover, proxies play a crucial role in ensuring quorum requirements are met for valid decision-making. By allowing shareholders to appoint proxies, companies can avoid situations where meetings are adjourned due to insufficient attendance, thereby ensuring that decisions can be made in a timely manner to address business matters.

Additionally, proxies can be used strategically by shareholders or directors to pool voting rights and influence outcomes on specific agenda items. This can be especially relevant in contentious matters or when certain shareholders seek to consolidate their voting power to achieve particular objectives.

Overall, the use of proxies during Board Meetings and AGMs is vital for promoting shareholder democracy, facilitating broader participation, and ensuring efficient decision-making processes within companies, as outlined in the Companies Act 2019 of Ghana.


It is essential to follow applicable legal requirements, such as those outlined in the company's articles of association, The Companies Act and relevant corporate governance guidelines, throughout the AGM process. Additionally, ensuring transparency, fairness, and effective communication with shareholders is key to a successful AGM.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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