All Singapore companies are required to convene Annual General Meeting (AGM) for every financial year end. Lack of experience or knowledge about steps in AGM can cause unnecessary delays.
Mandatory steps prior to convening AGM
Step 1- Completion of book keeping
Before an AGM can be convened, accounts of the company are required to be finalised. Book Keeping, which is basically keying in the journal entries in the books of accounts, needs to be completed using any accounting software (or manual books, which I presume is obsolete now).
Step 2- Compilation of Financial Statements in accordance with Singapore Financial Reporting Standards
There is a misconception amongst many business owners that once they have completed accounting entries (book keeping), which creates balance sheet and profit and loss account, it is sufficient to presume that accounting requirements have been complied with.
Singapore companies shall prepare a financial statement in accordance with Singapore financial reporting standards (SFRS) which is basically 15-20 page booklet.
You may visit my another blog post by clicking here to know more about contents of financial statements. You may fill in the contact form below if you need professional assistance to prepare SFRS financial statements for your company.
Step 3- Directors resolution to approve accounts and call for AGM
Once the financial statements are ready, a directors resolution (which can be passed in a physical meeting of board of directors or can be passed as a resolution by written means) is required to approve the financial statements and authorise directors to sign the same and call for AGM (which again can be in written means or a physical AGM meeting can be convened)
AGM by written means (option 1)
Private companies in Singapore have the option to dispense with the physical AGM and pass AGM resolutions in writing (by circulation) whereby the shareholders can sign the resolution at the convenience of being at different places, anywhere in the world.
However if your company wishes to convene AGM by written means, it must dispense with holding physical AGM (an one time exercise). You may visit my blog post on dispensing of AGM for further details.
Convening physical AGM (option 2)
Second option to convene AGM is to have a physical meeting whereby all shareholders meet at a predetermined place at a predetermined time to discuss the matters and pass the resolution accordingly. A minimum notice period is require to be given before convening physical AGM (usually 14 days but will depend upon your company’s by laws).
If you wish to know more about items/matters to be taken up during the AGM, please click here.
Please note that as per recent amendments, dormant companies are no longer required to prepare its financial statements. You may click here to read more about it.
You may fill in the contact form below if you need any clarification or you wish to take up professional services for convening AGM of your Singapore Company.