It’s the Singapore company’s obligation to hold an AGM (Annual General Meeting) yearly and file Annual Return, as the regulations of the Company Act and the Accounting and Corporate Regulatory Authority (ACRA) that companies have to stay compliant.
In this article, we will find out what AGM & AR are, how do their processes are like and another couple of notice for companies to hold a successful AGM.
Definition of AGM and AR
AGM is going for Annual General Meeting, it’s a yearly meeting of all the shareholders in the Singapore company. It’s an occasion for company to inform their financial statements, business health, etc. Shareholders are permitted to raise queries, vote and make important decisions for the company (such as appointment or removal of a director). According to the Companies Act, every company must have the first AGM held within 18 months from the date of incorporation, meeting can be held every year with the interval of not be more than 15 months between such AGMs.
AR is stand for Annual Return, one of the annual filing requirements almost all company in Singapore have to file with ACRA yearly, for updating company information. The AR must be signed by director of the company or a company secretary upon submission. These information containing:
- Company Name and Registration Number
- Principal activities
- Registered Office Address
- Details of company officers (directors, secretary)
- Shareholder details, share capital, etc.
- Dates of Annual Returns, Annual General Meeting and Accounts
- Financial statements (XBRL format), if necessary. This financial statements need to be audited following the Reporting Standard mandates all companies to prepare year-end Financial Statements that summarize the financial activities during the accounting year in XBRL format.
The process of holding AGM & filling AR
There are 2 main tasks that an AGM has to be completed, which is giving shareholders information of the company’s situation (such as inform financial statements, and business health) and answering shareholders’ questions about the company. The meeting leader is very important, usually are the chairman of the company. If there is no appointment for the position, every members in the AGM can be appointed to direct the meeting. Secretary or appointed secretary need to prepare every necessary documents for AGM (such as Company Constitution)
Detail timeline for holding AGMs and filing of AR
- On the other hand, there are some companies that are exempted from holding AGM or has dispensed with the holding of AGM, these companies have to submit the details when filing the company’s AR.
- The penalty for failing to comply with the requirements for holding AGM & filing AR can be paying a fine or sometimes going to the court prosecution imposed by ACRA.
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