Do you know that all private and public-listed companies incorporated in Singapore must hold an Annual General Meeting?
An Annual General Meeting (AGM) is one of the compliance requirements for all Singapore companies. The annual meeting is mandatory to be held by a company to keep its shareholders updated with the business health, financial performance as well as the progress of the company.
Failing to comply with the requirements for holding an AGM and filing of annual return will result in officers of the company facing penalties and/or court prosecution imposed by ACRA.
Today, we would like to share the following pointers with you to ensure that your AGM is carried out seamlessly:-
1.When must the AGM be held?
For companies with FYE on or after 31 August 2018, AGMs are to be held:
– For listed companies: within 4 months after FYE
– For any other company: within 6 months after FYE
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.
2. Where is the venue of the AGM?
Once the date is sorted out, the AGM can be conducted in a physical location or via a virtual Zoom meeting.
The company must send to shareholders, the written notice (that includes the date, time and venue of the AGM, details of the resolution to be passed) at least 14 days before the AGM.
3. What are the topics that need to be discussed?
Key topics are
- to present detailed information about the company’s performance and to deal with matters such as adopting the previous year’s income statement and balance sheet,
- setting of dividend and its payment, and
- appointing members of the Board of Directors and the officers
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.
4. Who will be taking the minutes?
It is mandatory to record the minutes of an AGM. Moreover, keeping a record of the meeting is a good practice to ensure that everything discussed has been recorded. You may want to consider getting a secretary to sit in to perform this important task on the date of the AGM.
Conclusion
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.
Furthermore, it is mandatory for every company to stay compliant with the regulations and requirements of the Companies Act and ACRA in Singapore. If you need help to hold your AGM, file your annual return and accounts in XBRL format, Accounting Consultancy is always here to help you out. Contact Accounting Consultancy today!
Accounting Consultancy is a Professional Accounting Firm in Singapore with qualified accountants. Over the years, our focus is to provide Professional, Personalised & Prompt accounting services to local and international clients. As a result, our organization grew rapidly over the years, attaining many awards and certifications.