A general meeting is a gathering of the shareholders of a company. At the meeting they review the company’s performance and make decisions about the future.
Limited liability companies have to hold an annual general meeting at least once a year. Usually there is a deadline to hold the annual meeting, for example five months after the end of the fiscal year.
Companies can also choose to hold extraordinary general meetings throughout the year.
Annual meeting versus extraordinary meeting
An annual general meeting is held once a year to go through a company’s performance, question senior management—such as the CEO—and vote on important decisions such as selecting a new CEO or appointing a new auditor.
If urgent matters come up, the shareholders can call an extraordinary general meeting. These are sometimes referred to as just ‘general meetings’. The same rules apply to extraordinary meetings and annual meetings, however, the agenda for an extraordinary meeting will vary more than it does for the annual meeting.
The rules vary from country to country, but generally extraordinary meetings can be called by a CEO at their will, or they must be called if it’s requested by shareholders who hold a certain percent of the votes on the board.
There’s usually a legal requirement for how far in advance the meeting invitation must be sent. For example, an extraordinary meeting might have to be scheduled at least 3 weeks in advance. Whatever the legal requirements, members can agree to a shorter deadline.
Agenda for a general meeting
At a general meeting, the members discuss the broader lines of the company’s performance and make decisions about its future. It’s not an arena to look closely at daily management activities.
Agenda items can include: