Mandatory Steps Prior to the Convening of a Singapore Company’s AGM
It is mandatory for the officers of all Singapore companies to convey Annual General Meeting (AGM) for every financial year end. The objective is to table the financial statements of the company and make the shareholders aware about the financial state of the company.
However, a new Singapore company setup gets a little bit of leeway. It is allowed hold its first AGM within the 18 months from the date of its incorporation. The Singapore incorporation services and the corporate services providers like SBS Consulting help the Small and Medium Enterprises (SMEs) with their statutory compliance and in holding a successful AGM.
Step 1# Prepare Books of Accounts
It is the responsibility of the directors to see to it that the accounts of the company are prepared accurately showing each business transaction conducted on behalf of the company.
Step 2# Preparation of Financial Statements
Preparation of books of accounts, in turn, leads to the creation of balance sheet and profit and loss statement. The directors and/or the business owners cannot stop with it and need to go an extra mile. They need to oversee the preparation of the financial statements strictly according to the Singapore Financial Reporting Standards.
Step 3# Convening AGM in Singapore
A) AGM by Written Means
Companies operating in Singapore have 2 options when it comes to holding their AGMs. They can decide to pass AGM resolutions in writing. The shareholders are not asked to gather at the meeting place, rather, the resolution is circulated from place to place for the shareholders to sign.
B) Convening Physical AGM
The second option of convening an AGM is to hold a proper meeting of all the shareholders of the company to discuss the company activities and pass the required resolutions accordingly.
The company secretary sends the notice giving the time, date, and place of the meeting to all the concerned parties. A minimum notice period, usually of 14 days, is required to be given before convening this type of AGM. The duration of the notice period depends on the bylaws of the company.
As you can see, the purpose of holding an AGM is to pass on the business information to the investors i.e., stockholders of the company. It is an occasion where they can raise their objections or express their satisfaction about the way their investment is managed. It is a safeguard to protect their hard earned money.