10 things to watch out for when...Attending your company AGM
It's your right: All shareholders have a right to attend the company's annual general meeting, even if it is just to catch a glimpse of the chief executive, grab a few snacks or bask in a feeling of belonging. There is more to it than that, however. With financial scandals regularly making news, shareholders need to realise the importance of their role within companies.
Bottom-up approach: Increasing emphasis on corporate governance and social responsibility means what shareholders say holds sway. AGMs are the legitimate venue at which to raise concerns about the management of the company. If you cannot attend, nominate someone to stand proxy.
When?: By law, every company must hold an AGM every calendar year, and not more than 15 months may pass without an AGM, according to the Securities and Futures Commission. All registered shareholders should have at least 21 days notice of the AGM, although a company's articles of association can specify a longer period. Listed companies must publish notice of AGMs, including location, date and time, and agenda.
First-timers: If you have never been invited to the company AGM, it is probably because your shares are held through your brokerage in the Central Clearing And Settlement System (CCASS). Ask your broker to ensure you receive notice.
Issues raised: Besides statements from the chairman and auditors, you will hear about the balance sheet, profit and loss, dividends as well as appointment of directors and other company business.
Flashpoints: Keep your eyes and ears open for subjects such as directors' remuneration or proposals to issue new shares, which can affect shareholder value.
Voting: A show of hands is a common way to vote at an AGM, although a poll can be demanded, which takes into account the number of shares each person holds.
Asking questions: The chair of the meeting will take questions from shareholders about each item on the agenda. Proxy representatives can only vote if a poll is called.
EGMs: Directors or shareholders with 5 per cent of voting rights can call an extraordinary general meeting. An EGM will be called in the event of major changes or takeovers.
Graphic: triggbgwz
