An Overview Of Setting Up An Annual General Meeting In Hong Kong

Annual General Meeting Hong Kong: What Is An AGM?

The Annual General Meeting Hong Kong is a mandatory exercise in Hong Kong in which Companies must organize a gathering between the shareholders of the company and the executives, where important issues regarding the company, such as financial reports, tax statements, audits, and so on. would be discussed and addressed.

Following the guidelines provided in section 610 of the Companies Ordinance in Hong Kong, the Annual General Meeting must be held once a financial year. Usually, within nine months of the Financial Year End, the Annual General Meeting Hong Kong should also be held with the company’s regulations and ideology. 

A notice of 21 days would be given to the shareholders and executives; however, this period of notice might change depending on the company’s laws and articles of association. The notice can be in physical form and mailed or electronically via the company’s website or in both mediums.

The contents of the notice are details such as the Annual General Meeting Hong Kong date and time, the location of the meeting (Physical, Virtual, or Both), the name of shareholders that can attend the meeting and their proxies, the issues to be discussed at the meeting, and the voting process that would take place. 

A typical Annual General Meeting Hong Kong is focused on accountability and puts emphasis on the opinions of the shareholders. In the Annual General Meeting Hong Kong, shareholders are given the stage and power to listen and decide on the major affairs regarding the company, such as audit statements, financial reports, voting of executives, nature of payments and dividends, and amendment of the company’s constitution.

Annual General Meeting Hong Kong: Setting Up the AGM

When the company has received and studied the financial statements and audits provided. A committee will be established in the company, and the team will be tasked with setting up an Annual General Meeting Hong Kong. The functions of this committee include doing a detailed review and approving the financial statements of the audits provided. Furthermore, they will review the dividend payment system, noting the change of company executives, and also create a comprehensive report of the last meeting.

As per the law, the Annual General Meeting Hong Kong must be held within nine months of the financial year’s end. After the date of the Annual General Meeting Hong Kong has been decided by the committee, a notice would be sent out normally 21 days earlier than the said date. The people who are eligible to be invited to the Annual General Meeting include every worker in the company, all the directors and executives, the auditors, and the shareholders.

The common outline of a typical Annual General Meeting is as follows:

• Welcome Address. 
• Minutes of the Last Annual General Meeting.
• CEO report.
• Financial and Audit Report.
• Declarations of the Company Assets and Dividends 
• Changes in the Company Constitution 
• Elections and Voting.
• Announcements of New Members.
• Announcement of the Auditor for the next financial Year.
• Questions and Opinion section.
• Closing Address.

Key points to take note of when setting up an AGM in Hong Kong are:

• Government policies and laws.
• Shareholders attitude: It is important to communicate with the shareholders well.
• Proxies should be set up as soon as possible.
• Smooth Interactive section and freedom of speech.
• Alternative locations and provisions for live streaming and the virtual meeting should be considered.
• Comprehensive and Accurate reports and Company statistics.

5 Reasons for the Annual General Meeting Hong Kong

An Annual General Meeting Hong Kong is important and must be held due to various reasons and purposes, such as:

1. To know the overall state of the Company.
2. Serves as an avenue for Shareholders and Company executives to meet.
3. Elections and Voting of new Directors.
4. Issues regarding stocks, dividends, and payments.
5. Plans for the next Financial Year.

Exclusions to the Annual General Meeting Hong Kong

There are certain exceptions to the rules and occurrences surrounding the Annual General Meeting Hong Kong, as follows:

• If a company has only one member and shareholder, then as per the law, it’s not mandatory for that company to hold an Annual General Meeting Hong Kong.
• Dormant Companies that have been inactive for some time are not required to hold an Annual General Meeting Hong Kong.
• The period of an Annual General Meeting can be pushed back from the normal time, as the law provides. 
• Members of the Annual General Meeting can send in other people as representatives; if they are unable to make the meeting, these representatives are called proxies. Timely notice must be given to make this arrangement work.
• A virtual Annual General meeting can be held instead of a physical one via platforms such as zoom.

How Can We Help?

Setting up a proper and efficient Annual General meeting is crucial for a company’s progress and harmonious relationship with its shareholders. If the issues regarding the Annual General Meeting seem complicated to you, or you just want the very best, Premia TNC is always ready to help you organize a smooth and successful Annual General Meeting Hong Kong with our outsourced company secretarial services and our comprehensive suite of other corporate services.