As part of the ongoing compliance regulations, all private and public-listed companies incorporated in Singapore must organise an Annual General Meeting (AGM) to update the business’s stakeholders on the company’s performance, address burning questions, and vote on important resolutions.
Failure to comply with the regulations could result in a penalty, which may hamper regular business operations. Therefore, it is crucial for companies to schedule their AGM on time and to update the relevant participants know ahead of time. However, before conducting this meeting, the organiser needs to consider the following four points to ensure the AGM goes off without a hitch.
What is the venue, date and time of the AGM?
When setting a date for your AGM, you have to pay special attention to the Singapore Companies Act. The guideline states that a newly formed company has to organise an AGM within its first 18 months. Subsequently, the next meeting has to be held once every fiscal year and within 15 months from the previous one. Therefore, when scheduling a date for your AGM, the organiser must keep this timeframe in mind to avoid breaching regulations.
Should you be unable to meet the deadline, your company can request an extension with the Accounting and Corporate Regulatory Authority (ACRA) by submitting an Extension of Time (EOT) through the Bizfile portal. The application costs $200, and your business will be granted an extension of up to 2 months to hold your AGM.
After a date is sorted out, you need to decide on a venue, whether it is a physical location or a virtual Zoom meeting. Depending on the size of the company, there may be numerous participants required to attend an AGM. Therefore, it is best to notify the relevant stakeholders well in advance to ensure they can schedule a time to participate in the meeting. If they are unavailable, they may send a proxy to sit in on the AGM in their place.
Who will be presenting?
Detailed information about the company’s performance and balance sheet are the common topics of discussion in an AGM, as stakeholders will like to know if their investments are paying dividends. Should the business be struggling, they will also request to know what is being done to rectify the issues. Therefore, it is vital to ensure the reports presented are comprehensive and that the ones in charge of the presentation are well-prepared to answer investors’ questions.
What are the topics that need to be discussed?
Time is another crucial factor to consider when planning an AGM. As the meeting is typically held once a year, there are numerous grounds to cover in the few hours you have scheduled. Therefore, it is best to prioritise the important subjects and address any pertinent questions investors may have.
The major topic on every stakeholder’s mind is likely to be the financial health of the company. Discussions related to finances, sales, and the company’s marketing strategies should be broached early on during the meeting, so there is sufficient time to address them. When discussing the business’s finances, it is essential to ensure all financial reports are presented in a detailed and easy-to-digest format.
To ensure your financial reports are meticulous and up-to-date, you may want to consider outsourcing your bookkeeping to a specialised accounting firm, especially if you don’t have the time or the technical know-how to do this. At Ackenting Group, we offer corporate accounting services to ensure you receive prompt and precise financial reports. A well-documented financial report can help your stakeholders better understand the company’s performance and ensure it is on the right path to success. We also provide incorporation services for entrepreneurs looking to set up a new business here in Singapore.
Who will be taking the minutes?
It is mandatory to record the minutes of an AGM. Keeping a record of the meeting is a good practice to ensure that everything discussed has been recorded. Having the critical discussion points jotted down also allows you to recall any issue or question that may arise from this meeting so you can address them in future business plans. You may want to consider getting a secretary to sit in to perform this important task on the date of the AGM.
Conclusion
With various topics up for discussion, thorough planning is critical to ensuring that an AGM is productive. Having the relevant stakeholders attend the meeting and covering the essential subjects should be the foremost considerations in your mind when organising this event. However, despite all the planning involved, you should not overlook your financial report as it will be the key topic of discussion during the AGM.
If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.
