What is an AGM and why should investors get involved?

If you own shares in an individual company, that means you're a part owner of that company. As such, you have a say in how it's run and the right to vote at their annual general meetings.

What is an annual general meeting?

An annual general meeting, also sometimes referred to as an annual general body meeting, is a mandatory gathering between a company’s board of directors and its shareholders. It's the one time of the year when management is legally required to face investors and report on the past year’s performance.

AGMs are important because they provide transparency in how a company is run and hold the board of directors to account. They're an opportunity to ask tough questions and deal with any concerns you may have.

Even if you don’t own individual stocks but hold investment trusts, it’s worth noting that these also have AGMs.

Annual general meeting agenda - what happens at an AGM?

The format of AGMs can vary, but a typical annual general meeting agenda includes:

• The annual report presentation
• A shareholder vote on several statutory resolutions
• A question-and-answer (Q&A) session

Statutory resolutions typically include:

• Receiving of the report and accounts
• Declaring a dividend
• Election/re-election of directors
• Authority to issue new shares or buyback of existing shares
• Approving the remuneration policy and report
• Authority to restructure the company

It's rare for resolutions to be voted down. To pass, they need to get a simple majority, or greater than half of the votes cast. However, if significant opposition is registered, companies will often take account of this in future decision making.

There are also special resolutions, for example moving a company’s headquarters, changing the company name, or approving the sale of a company, which require a 75% majority.

What is an extraordinary general meeting (EGM)?

An extraordinary general meeting or EGM refers to a shareholder meeting called outside of an AGM to deal with important matters that can't wait until the next event. They often relate to special resolutions.

Typically, EGMs encompass items like considering mergers and acquisitions and changes to a company’s structure or stock market listing.

Major shareholders can also demand an EGM, often if they want to remove incumbent directors or appoint other directors to the board.

How do I attend an AGM or EGM?

If, like most people, you hold shares in an account on an investment platform, for example AJ Bell, you're not on the shareholder register. That means you'll need a letter of representation from the platform to attend a meeting in person.

If you’re an AJ Bell customer, you can ask for a letter of representation by logging into your account online and sending us a secure message or emailing dealingservices@ajbell.co.uk with your request. We’ll provide the document to you as soon as possible. Remember to allow time for the request to be processed in advance of the AGM or EGM.

How do I vote at an AGM or EGM online?

Even if you don’t attend in person, companies usually provide ways to vote electronically for free and often livestream meetings or post meeting recordings.

If you have an AJ Bell account, it’s easy to vote online at AGMs and EGMs for both UK and international shares, as well as investment trusts. 

You’ll receive a notification when you're able to vote in a meeting for a stock held in your portfolio. When logged in, you can quickly and easily place voting instructions.

How voting works on AJ Bell