Importance of AGM's for organizations in Canada
AGMs (Annual General Meetings) are special business meetings held annually to allow the shareholders of organizations to discuss strategical goals, pass a law, or approve the selection of the members of the Board of Directors through voting. In large organizations such as multinational companies, these meetings are the major platform where shareholders and executive board members interact with each other. In simple words, an AGM is an annual gathering of an organization’s interested shareholders to make decisions on critical business-related matters through voting.
It is usually chaired by the Director (s) of the organizations. An annual report containing the information about the organization’s performance is presented to the participants in the meeting. By evaluating and analyzing this report, they make further decisions in the larger interest of the organization. Just like in other countries, organizations in Canada also use AGMs as a platform to discuss their significant business-related matters. Each participant of the Annual General Meeting secures voting rights and can give an opinion on every matter.
Here we’ll discuss why AGMs are important for organizations in Canada. So, let’s get started!
AGMs boost Accountability Mechanism
Annual General Meetings ensure everyone is held accountable for their responsibilities and actions. These meetings allow the organizations’ stakeholders to analyze the historical record and performance data of every employee, including the board of directors. This offers the opportunity for the organization to openly analyze everyone’s performance and make decisions on how to improve. Essentially, AGMs help the shareholders to figure out who is doing well in a specific position and who is not. The participants can take part in detailed discussions related to appointment-related issues.
AGMs serve as an excellent platform for brainstorming ideas
In this important meeting, each participant is encouraged to give their opinion and point of view on every matter. This leads to the generation of new ideas on how to deal with issues and challenges faced by the organization. AGMs promote knowledge sharing among participants to make the decision-making process more effective. These meetings also have a mandatory Q&A Session that allows participants to get information about business-related matters.
A healthy business relationship between policymakers and teamwork is key to the prosperity of an organization, and this can be achieved through AGMs. These meetings offer a great opportunity to the shareholders of an organization to meet their colleagues in a professional environment. They have a platform to iron out any communication gaps among them to work collectively for the sake of the organization’s progress.
AGMs Deliver a good message to the general employees of an organization
It mostly involves the discussion on how to improve the employees’ productivity and what is required to achieve it. These meetings produce a sense of being taken care of among the employees. They start admiring the fact their leadership and management are united to discuss their issues.
Besides this, AGMs provide ample opportunity for the shareholders to analyze that their investment is being used appropriately and profitably. If they feel that organization’s performance is not good, they can ask questions from the board of directors and management as to why performance has been poor. These meetings provide them a solid platform to demand satisfactory answers as well as to inquire about the strategies and actions the management is intended to take to turn the company around.
Some business matters are too important to discuss in the usual business meetings. For example, if an organization is contemplating a merger or an acquisition, it is essential to take shareholders on board through a proper channel, such as an AGM.
Due to the prevailing situation of the COVID-19 Pandemic, the AGMs have been shifted to the hybrid model. The hybrid is referred to as an electronic general meeting that uses the best elements of traditional AGM and Virtual AGM. Hybrid AGMs offer freedom to the attendees to participate in the meeting in person or remotely (using a mobile device or laptop in-home or office).
Planning an annual general meeting?
If you want to host a Virtual or Hybrid (Annual General Meeting) for your organization and are looking for professionals to manage it, you can count on Resolve. We provide fully managed services on our highly secure, 100% Canadian, virtual event platform on which you can organize your AGMs with high accessibility for your shareholders.
At Resolve, we are platform-agnostic, so to capture the audio & video of the presenters, we can provide you with our Canadian videoconferencing platform or we can integrate any videoconferencing platform that your organization might already be using, such as Zoom, Webex, or Teams.
With state-of-the-art management of Virtual Events, Resolve provides the following online features for your AGM:
- Private Q&A
- Public Chat
- Live Polling
- Online Voting
- Transcription Services
- Simultaneous Interpretation
With Resolve Collaboration, we guarantee you will not regret it.
*Absolutely no obligations