After setting up a company, the meeting of shareholders is an important event that facilitates the making of decisions with regards to a variety of company matters. General meetings are an opportunity for shareholders to exercise the rights that are attached to their holding, for example to vote on important key decisions. There are administrative requirements linked to all meetings, often the responsibility of the company secretary, such as taking minutes and giving notice.

Private companies are no longer legally required to hold an Annual General Meeting (AGM), though it remains a statutory obligation for all public companies. This is the only difference between an AGM and other shareholders meetings. In spite of the relatively high administrative burden that is attached to this type of meeting, some private companies have still continued the practice. Some will include the decision to hold one in its Articles of Association. The AGM can often be seen as a guide to the company’s year. Not only is it the opportunity for shareholders to discuss important subjects affecting the company, but the regularity of the event may help to indicate a company’s year beginning and year end.

When you register a company, it is important that you know all your obligations to avoid committing an offence. The legal requirement for public companies is to hold the AGM within six months of their accounting reference date. There are no regulations on the specifics of the date and location of the meeting, though the choice lies with the directors. It is important to note, however, that the decision must lie within the guidelines of the articles of association and law. In addition, it is important that directors give those entitled to attend the AGM fair notice. Notice must be received 21 days ahead of the meeting being held, however exceptions can be made with the agreement of all entitled to attend.

If a party holding more than 5% of the total shares would like to include a resolution in an AGM, they can requisition its inclusion. As part of their rights, they can pass a subject to be considered at the meeting, however this will only be accepted if the company has received it a number of weeks beforehand. Usually, the cost of the circulation must be met by those shareholders proposing the resolution, but there are exceptions. As with any resolution, the proper procedures of notice must be followed in order for the subject’s inclusion to be effective.

In addition to annual general meetings, companies can also hold specific class meetings which are relevant to a specific class of shareholder. These are usually held when changes are to be made to the rights or powers of those shareholders. Any type of shareholder can attend class meetings, though it is important to note that only those who are entitled to vote can do so.

If you have any questions as to your newly set up company and its requirements, please don’t hesitate to contact our customer support team on 0844 893 0808.