Unlock Smooth AGM & Annual Return Filing with CFO Accounts & Services

Annual General Meeting (AGM) and Annual Return filing should be smooth for businesses of all sizes. CFO Accounts & Services, the leading small business accounting firm, makes unlocking a smooth AGM and Annual Return filing experience easy.

What is The Purpose of an AGM?

The primary purpose of having an AGM is for the board of directors to report to shareholders about their activities over the past fiscal year and present financial statements that indicate how well the company has performed. The shareholders then have an opportunity to ask questions about aspects of the company’s operations before voting on various proposals put forward by the board.

At an AGM, shareholders are also asked to approve general matters such as dividend payments, payment of executive salaries and other business transactions involving financing or capital expenditure decisions by management. Additionally, shareholders can elect new or re-elect existing board members deemed more suitable for their needs. The various reports and discussions will typically bring light to any strategic changes made over the previous year and make them visible for everyone attending to observe. Allowing everyone to weigh in creates transparency between parties, which could lead towards better relationships among stakeholder groups within a company's scope.

When Are AGM Meetings Held?

• New companies are required to hold an AGM within 18 months of the date they were established.
  
• Established companies are required to hold an AGM within 15 months of the date of their previous AGM.

New and established companies are required to hold an AGM within 6 months before the end of their financial year. Singapore regulations do allow nominee directors in the place of shareholders if desired. Once a company holds its AGM, it has 30 days to file an Annual Return (AR) with the Accounting and Corporate Regulatory Authority of Singapore (ACRA).

An annual return contains several information about a company's financial statements. Necessary information includes:

• The company name
  
• The company's registration number
  
• Primary activities of the company
  
• An up-to-date registered office address
  
• A list of the company's office-holders
  
• A complete list of all shareholders, including share capital
  
• The company's annual financial statements

Please note that certain companies are exempt from including annual financial statements. These include:

• Small Companies - These are companies whose revenue and assets are less than S$10 million and have no more than 50 employees at any given time.
  
• Exempt Private Companies - To be considered in this category, a company must have a maximum of 20 shareholders, and none can be corporate shareholders.
  
• Dormant Exempt Private Companies - These companies have been inactive for the entire fiscal year.

Each company must use BizFile, ACRA's online system, for annual returns. Companies that file late are subject to fines that increase daily as the number of days the company files late increases.

There are certain situations in which a company's financial side can file an AR without holding an AGM. However, they must file through BizFile for an exception and gain approval before doing so.

As a gatekeeper for compliance with the filing of various reports, the Company Secretary is tasked to ensure that all financial statements presented are prepared accurately and comply with accounting standards. Directors have an essential duty when it comes to preparing accurate books from which they can be accountable before external parties such as investors or auditors.