- Prasna Devi
3 Types of Shareholder Meetings in Malaysia
Are you a shareholder of a company?
If yes, make sure to attend the annual general meeting (AGM) and extraordinary general meeting (EGM). These meetings provide links of communication between shareholders and management and enables members to exercise their votes.
Here’s a brief overview on the 3 types of shareholder meetings in Malaysia.
Why is Having a Shareholder Meeting Important?
Shareholders have the right to know on the development of the Company growth.
For members to debate and use their rights to vote on matters that have direct impact towards the Company.
Role of a Shareholder in a Company
Once the Company starts generating profit, then the shareholders have the right to receive dividends - a form of return of the investment they initially made.
Even though shareholders will not be attending every meeting conducted by the Company, they are however expected to attend the Annual General Meeting (AGM) or Extraordinary General Meeting (EGM).
During the meetings, the board of directors are expected to update the yearly event occur to the shareholders. Members will then discuss, debate, and use their rights to vote before a conclusion is made.
Types of Shareholder Meetings in Malaysia
1. Annual General Meeting (AGM)
According to Companies Act 2016, Annual General Meeting (AGM) is not compulsory for a private limited Company to hold. This is due to the fact that Companies Act 2016 has given the access for a Company to be owned by sole director and shareholder, hence, there is not a need for such meeting to be held.
However, for Companies who are owned by different individuals or corporate, it is a norm for them to still abide to their constitution and hold the AGM annually. The AGM is normally conducted for board of directors to inform the well-being of the Company and for shareholders to discuss the Company related affairs.
2. Extraordinary General Meeting (EGM)
An Extraordinary General Meeting (EGM) is normally conducted to discuss urgent matters that requires a conclusive answer within a short period of time. Such a meeting is normally conducted to discuss matter such as legal matter as well as removal of members or directorswithin a Company.
In short, EGM is similar to AGM but it can be conducted in anytime of the year while an AGM is only conducted once, which is normally after the Company financial year ended.
3. Class Meeting
A class meeting is different compared to AGM and EGM. Such a meeting is held only for holders of different classes of shares within a Company to attend and vote.
Classes of shares in Malaysia are categorised as two:
If you require further clarifications or would like to appoint a Company Secretary, contact us via WhatsApp at https://wa.me/60143248237.