What is an Annual General Meeting (AGM)?
An annual general meeting (AGM) is an SEC-mandated gathering of a public company's senior management and shareholders for the purpose of exchanging important information.
How Does an Annual General Meeting (AGM) Work?
The Securities and Exchange Commission (SEC) mandates that publicly-traded companies keep their investors informed by way of an annual general meeting. This meeting allows a company's shareholders to gather with its senior management in order to address current operations, long-range planning and strategy, and analysis of financial data. The announcement of an AGM must be provided at least three weeks prior to the event, and the SEC places limits on the number of months that may pass between one AGM and the next.
Why Does an Annual General Meeting (AGM) Matter?
An AGM provides a way for a company to formally communicate internal information about the company to its owners (i.e. shareholders). It also serves as a forum for answering questions from shareholders with regard to their holdings' valuation and growth concerns.