An Annual General Meeting (AGM) is a critical event for Malaysian companies, ensuring compliance with legal obligations and fostering transparency between directors and shareholders. Whether you’re a seasoned business owner or a startup founder, understanding AGM requirements is essential to keep your company in good standing.
What Is an AGM?
An AGM is a yearly meeting where a company’s shareholders gather to discuss the company’s performance, approve financial statements, appoint directors, and address any concerns. For private limited companies (Sdn Bhd) in Malaysia, AGMs are mandatory only if the company is a public company or as stipulated in its constitution.
Who Is Required to Hold an AGM?
• Private Companies (Sdn Bhd): Generally, they are exempt from holding AGMs unless required by their constitution. Instead, resolutions are passed via written resolutions.
• Public Companies: Must hold an AGM within six months of the end of their financial year and no later than 15 months after the previous AGM.
Key AGM Agenda Items
1. Approval of Financial Statements: Shareholders review and approve audited financial reports.
2. Appointment of Directors: Election or re-election of directors may take place.
3. Auditor Appointment: Approval or reappointment of the company’s auditors.
4. Dividend Declaration: If applicable, shareholders discuss and approve dividends.
5. Other Resolutions: Address any other matters raised by shareholders.
AGM Notice and Quorum Requirements
• Notice Period: Shareholders must be given at least 21 days’ notice before the AGM.
• Quorum: The company’s constitution will specify the quorum needed, usually two shareholders for public companies.
Filing and Documentation
After the AGM, public companies are required to:
• File the Audited Financial Statements with the Companies Commission of Malaysia (SSM).
• Update statutory records, including director appointments or auditor changes.
Consequences of Non-Compliance
Failure to hold an AGM or submit required documents can lead to penalties under the Companies Act 2016, including fines and potential prosecution of directors.
How We Can Help
Navigating AGM requirements can be overwhelming, especially with changing regulations. Our firm specializes in ensuring your company remains compliant with SSM and other authorities. From drafting resolutions to filing statutory documents, we’ve got you covered.
Stay compliant and let us handle the details—so you can focus on growing your business. Contact us today to learn more! WhatsApp us or give us a call at 016 324 0990.
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