The Ultimate Purpose Of The AGM Voting

0
18

An auditor is a person who is responsible for reviewing the corporation’s accounts.

Election of auditor- a major part of AGM voting

An auditor is a person who is responsible for reviewing the corporation’s accounts.

Duties of the auditor: –

  • The auditor makes sure that financial reporting and accounting are done in accordance with the company’s general rules and policies.
  • The auditor does not report to the board of directors of the company but he will report directly to the owners of the company.
  • Before the commencement of the AGM meeting, the auditor is responsible for issuing the report that has all the financial statements.
  • The auditor is the only person who is elected directly by the owners of the company.

Therefore, the selection process of the auditor is very important for the company and that is why it makes an important part of the AGM voting process.

The major purposes of AGM voting are as follows: –

  • Selection of the company’s board of directors.
  • Election of the auditor.
  • Allowing the shareholders to vote for financial issues of the company.
  • Interactions between shareholders and executives typically take place in this part of the meeting.

ssIs AGM voting mandatory for all the owners?

No, all the owners are not entitled to vote in the AGM. If in case, and owner is eligible to vote but is an area of common expenses within the 30 days or more, then they lose the power and authority to vote.

What is the importance of quorum in AGM?

A proper forum must be present not just at the beginning of the AGM but throughout it. It is important not just for the valid business transactions but also for the meeting to be completely valid. None of the transactions and decisions which are made during the meeting will be considered to be valid if there is no quorum present in the meeting.

Quorum is nothing but a minimum number of members of a specific assembly that are necessary to be present throughout the AGM meeting.

It can consist of 2 to 15 members. This number where is according to the size of the company and the number of members and shareholders that it has.