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Purpose of AGM~

Discussion in 'Cambridge IGCSE' started by orimairu, May 8, 2011.

  1. orimairu

    orimairu

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    Explain the purposes of an AGM

    This topic area was not well understood by many candidates. Most knew that AGMs provide an
    opportunity for shareholders to vote and elect the board members. However a significant number
    of answers contained errors – decide what to do next year/decide how much profit has been
    made/make decisions regarding operational matters/find out about the accounts.
    This appears to
    be an area of the syllabus that needs greater attention in a large number of Centres.

    Does this mean that AGM does not involve shareholders being informed of what the company has decided to do next year or profits they have made or find out about the accounts?'

    THANK YOU :beer:
     
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  3. Smile27

    Smile27

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    Annual General Meeting is a legal requirement for all companies. All shareholders may attend. They vote on who they want to be on the Board of Directors for the coming year.

    The definition from my textbook :)
     
  4. respect1

    respect1

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    AGM is a gathering of all the shareholders and managers and owners once a year to vote on who will take over the board of dirctors.
    They talk about how to improve the existing business.
    How the profits can be used for the following year.
    Discuss business's financial year.

    thats basically it. :)
     
  5. respect1

    respect1

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    Its the same definition in ma book - IGCSE BUSINESS STUDIES third edition by Karen Borrington and Peter Stimpson
     
  6. NotReadyForSchool

    NotReadyForSchool

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    AGM is an annual meeting in which directors and shareholders communicate directly with each other to elect member for the board of directors.
    In the meeting shareholders are informed as to what has happened and directors are responsible for their actions. Accounts and resolutions are accepted and approved. They discuss about "strategic issues", which means about unresolved major problems that determine which direction the business will take. Also, the elected directors have the power to make important decisions, but they hire managers that may or may not be shareholders for day-to-day decisions.
    That's basically my understanding of it :p
     
    FLRNAB likes this.

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