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Hi
In corporate governance question if there is a weakness mentioned in scenario that “Company is not planning to hold AGM as it would be too costly and impractical.” And the question ask that identify and explain the weakness and provide a recommendation to address the weakness.
So for the explanation of its weakness will it be correct to write that “AGM is an important meeting as it gives shareholders a chance to raise any questions, receive answers and vote on important resolutions. If company does not hold AGM, Shareholders won’t get chance to raise any questions.”
And its safeguard that “Company should continue to hold AGM.” would only this much length of safeguard be enough or do I need to explain this safeguard more?
Also, it is a legal requirement to hold an AGM and imporrant business has to be conducted there, such as appointing auditors. It is the time when the company’s owners get to question, and reappoint/sack directors.
The company should certainly hold an AGM. If it doesn’t the auditor’s position is undermined as they have to be reappointed annually. Not much more to say on safeguards.
As you said it is a legal requirement to hold AGM , this is for both listed as well as unlisted companies?
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