An annual general meeting (AGM) is the yearly meeting where a company's shareholders review its performance and vote on key decisions; an extraordinary general meeting (EGM) is a special meeting called for urgent matters that can't wait. If you hold even one share on the cut-off date, you have the right to attend and vote, including electronically.
What happens at an AGM?
A listed company must hold an AGM once every financial year. Management presents the annual accounts, and shareholders vote on resolutions such as adopting the financial statements, approving the final dividend, appointing or reappointing directors, and fixing the auditors. It is also the one scheduled occasion where an ordinary shareholder can stand up and ask the management questions directly.
Remember what a share actually is. A slice of ownership in the business, as explained in what is a stock or share. The AGM is where that ownership gets a voice. When Arjun buys 10 shares of Sundar Textiles, he isn't just holding a price ticker: he is one of the company's owners, entitled to notice of every general meeting.
An EGM covers everything that can't wait for the next AGM. Say, approving a large fundraise, a change in the company's charter, or removing a director. The mechanics are the same; only the agenda and timing differ.
How do I vote if I can't attend the meeting?
You almost never need to travel. Listed companies are required to offer remote e-voting, run on electronic platforms operated through the depositories and registrars. Because your shares sit in demat form with a depository. See what are NSDL and CDSL, the system already knows exactly how many shares you held on the cut-off date, and that decides your voting weight.
The flow generally looks like this:
- The company announces a cut-off date; shareholders as of that date can vote.
- You receive the meeting notice with the resolutions, by email or post.
- During the remote e-voting window (typically the few days before the meeting), you log in to the e-voting platform (commonly through your depository's portal) and cast your vote resolution by resolution.
- Votes are one-share-one-vote for ordinary resolutions, so Arjun's 10 shares carry 10 votes.
If you miss the remote window, you can usually still vote during the meeting itself, which most companies now hold with video-conference participation. And if you'd rather not engage at all, that's allowed too. Voting is a right, not an obligation.
Do my few shares even matter?
Individually, rarely. Promoters and institutions hold the bulk of most companies. Collectively, retail votes have blocked resolutions on executive pay and related-party deals in Indian markets. Resolutions also come in two strengths: ordinary ones pass with a simple majority, while special resolutions need a three-fourths majority of votes cast, which gives minority shareholders real blocking power when they act together. Voting outcomes are published afterwards, so you can see exactly how the numbers fell. Meeting dates often appear alongside other company events. See what the event tag next to a stock indicates.
Things to keep in mind
- Your right to vote comes from holding shares on the announced cut-off date, not on the meeting day itself.
- Keep your email ID updated in your demat account. Meeting notices and e-voting credentials travel to whatever address the depository has.
- E-voting is free, and your broker is not involved. The platform is run through the depositories/registrars.
- Read at least the resolution summaries before voting; a vote cast blindly is a vote handed to whoever framed the resolution.
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