{"id":50407,"date":"2024-07-15T10:00:45","date_gmt":"2024-07-15T08:00:45","guid":{"rendered":"https:\/\/www.captrader.com\/?post_type=glossar&p=50407"},"modified":"2024-08-02T10:22:52","modified_gmt":"2024-08-02T08:22:52","slug":"annual-general-meeting","status":"publish","type":"glossar","link":"https:\/\/www.captrader.com\/en\/glossar\/hauptversammlung\/","title":{"rendered":"Annual General Meeting"},"content":{"rendered":"

You may be a shareholder yourself and have received your first invitation to a general meeting or are researching an investment in Stocks<\/a>. In this article, we will show you exactly what an Annual General Meeting is, who can attend, how it works and what exactly is discussed.<\/p>\n\n\n\n

What is an Annual General Meeting?<\/h2>\n\n\n\n

So-called stock corporations or partnerships limited by shares hold an Annual General Meeting. This is where the Management Board and Supervisory Board of a company meet with the shareholders. Precise rules can be found in the Act on the Implementation of the Shareholders' Rights Directive<\/strong> (ARUG). <\/p>\n\n\n\n

Shareholders can represent their interests here. Depending on the type and amount of shares, shareholders have Voting rights<\/strong>which they can use at the Annual General Meeting. This allows investors to actively participate in shaping the company. In most cases, only major shareholders take part. Private investors, who only own very small shares, exercise their rights less frequently.<\/p>\n\n\n\n

The Annual General Meeting is prescribed by law<\/strong> and regulated. The company's shareholders are contacted in writing and informed of important dates, such as the exact date and location of the Annual General Meeting. <\/p>\n\n\n\n

Who can participate in an Annual General Meeting and how does it work?<\/h2>\n\n\n\n

The Shareholders <\/strong>are invited in writing in advance. You can appear in person or send a Representative <\/strong>appoint. Before they can participate and use their vote, they must prove that they are entitled to vote.<\/p>\n\n\n\n

Here the Ex-dividend day<\/a><\/strong> of significance. In Germany, this is the first day after the Annual General Meeting. On this day, the share price is reduced by the dividend or subscription right. The share is traded with the addition \"ex dividend\". In order to participate in the Annual General Meeting, the share must be in the securities account on this day. <\/p>\n\n\n\n

In addition, the Management Board <\/strong>of the respective company are present to discuss the important issues. The Members of the Supervisory Board <\/strong>take part in this meeting. The Chairman of the Supervisory Board moderates the discussions.<\/p>\n\n\n\n

It is not only people associated with the company who are present. Also Journalists <\/strong>often participate in order to gather information and report on important decisions. In addition, a Notary <\/strong>is required for the written record. This also ensures that legally important aspects are adhered to. <\/p>\n\n\n\n

How does an Annual General Meeting work?<\/h2>\n\n\n\n

Find general meetings once a year<\/strong> take place. These are often held between April and June. Normally, the meeting takes place in a sufficiently large hall. Due to the coronavirus pandemic and the resulting protective measures, meetings have also been held online. <\/p>\n\n\n\n

Before the actual meeting, a fixed Agenda <\/strong>will be worked out. This is announced so that participants can prepare themselves. First, the leader welcomes the participants, then the agenda items are worked through chronologically. <\/p>\n\n\n\n

It can also lead to a Extraordinary General Meeting<\/strong> come. This takes place independently of the usual Annual General Meeting, which is held once a year. Such a special meeting is convened if, for example, restructuring is required at short notice.<\/p>\n\n\n\n

We have compiled two personal visits to Annual General Meetings for you in the following experience reports: Visit to the Porsche Annual General Meeting<\/a> and the Henkel Annual General Meeting<\/a>.<\/p>\n\n\n\n

What is the purpose of the Annual General Meeting? <\/h2>\n\n\n\n

The Annual General Meeting deals with important issues that affect the future of a Group. One example is the Use of profits<\/strong>. For example, shareholders can vote on whether dividends should be paid out and how high they should be. Alternatively, companies can decide to build up financial reserves, invest in research or launch new projects.<\/p>\n\n\n\n

It can also be discussed how further Capital <\/strong>should be procured or whether such measures should be reduced. The participants can Amendments to the Articles of Association <\/strong>introduce and decide on or change the current Economic situation<\/strong> of the company.<\/p>\n\n\n\n

At Annual General Meetings Annual financial statements <\/strong>presented and upcoming Elections <\/strong>discussed. If a company is to be transformed, taken over or merged with another group, this is also discussed and voted on at a meeting.<\/p>\n\n\n\n

In addition, the Communication and exchange <\/strong>between company management and shareholders. Investors have the opportunity to ask specific questions and receive information. This is intended to facilitate effective decision-making. Corresponding feedback from investors can help the company management. <\/p>\n\n\n\n

It is important that the majority of shareholders approve the actions of the Supervisory Board and the Management Board. This means that investors can Expressing trust<\/strong> can. If necessary, they can also exert pressure and Criticism <\/strong>communicate. <\/p>\n\n\n\n

Conclusion: Annual General Meeting as an important meeting<\/h2>\n\n\n\n

An Annual General Meeting is a meeting of shareholders, representatives, the Management Board, Supervisory Board members, notaries and journalists. Shareholders can contact the company management and exercise their voting rights. <\/p>\n\n\n\n

Shareholders are contacted in writing in advance and informed of the date and meeting place. Such a meeting is required by law and takes place once a year. It is based on a predetermined agenda that includes chronologically relevant aspects. <\/p>\n\n\n\n

The purpose of the Annual General Meeting is to improve the exchange between shareholders and company management. Important aspects such as amendments to the articles of association, appropriation of profits, the economic situation, annual financial statements and other topics are discussed here.<\/p>","protected":false},"author":20,"featured_media":0,"template":"","class_list":["post-50407","glossar","type-glossar","status-publish","hentry"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar\/50407","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/glossar"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/glossar"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/20"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=50407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}