What is an Annual General Meeting (AGM)

An AGM is an annual meeting of a company's shareholders at which they are asked to carry out certain legal responsibilities.

 

These include:

 

1 Receiving the company's annual report and accounts

 

2 Noting and accepting the resignation and appointment of certain Non Executive Directors (or Members of the Board) in line with the annual cycle. One or two Tenant and Independent Non Executive Directors are required to retire each year in order to ensure that new people have a chance to join the Board. Those who retire can put their names forward for reselection.

 

3 Agreeing the appointment or re-appointment of the company's auditors for the forthcoming year.

 

This year's AGM takes place on 16 September 2008. Read the agenda here.

 

In the case of ALMOs such as Sheffield Homes, the constitution of the company is such that the council (new window) is the only shareholder. This helps to ensure that the council retains overall legal control of the company, but it must delegate much of its powers to the Board of Directors in order to ensure that it remains at arms length from the company.

 

This means that the AGM is essentially a meeting between a senior representative of the council (typically the Executive Director of Neighbourhoods and Community Care) and the Board, with the Executive Leadership Team in attendance in order to answer any technical questions.

 

It is an opportunity for the council to ask the Board questions on any of the above or related matters. However throughout the year there is ongoing liaision between the council and the company and therefore to a great extent the AGM is a legal formality.