B Com Exam  >  B Com Questions  >  What is the purpose of a company's annual gen... Start Learning for Free
What is the purpose of a company's annual general meeting?
  • a)
    To discuss matters of common interest among shareholders.
  • b)
    To ratify decisions made by the directors in their meetings.
  • c)
    To review the company's financial statements and elect directors.
  • d)
    To conduct meetings with creditors and auditors.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is the purpose of a company's annual general meeting?a)To discuss...
The annual general meeting of a company serves the purpose of reviewing the company's financial statements, discussing its financial performance, and electing directors. It provides an opportunity for shareholders to be informed about the company's activities and make decisions about its management.
Free Test
Community Answer
What is the purpose of a company's annual general meeting?a)To discuss...
Purpose of a Company's Annual General Meeting:

Reviewing Financial Statements:
- One of the main purposes of an annual general meeting (AGM) is to review the company's financial statements. Shareholders are provided with an opportunity to examine the financial performance of the company, including profit and loss statements, balance sheets, and cash flow statements.

Election of Directors:
- Another important purpose of an AGM is to elect directors to the company's board. Shareholders have the right to vote on the appointment or reappointment of directors, who play a crucial role in overseeing the company's operations and decision-making.

Approval of Dividends:
- At the AGM, shareholders have the opportunity to approve the payment of dividends. This decision is based on the company's financial performance and the recommendation of the board of directors.

Discussing Matters of Common Interest:
- The AGM provides a platform for shareholders to discuss matters of common interest, ask questions, and express their concerns. It allows for transparency and accountability in the company's operations.

Ensuring Compliance:
- Holding an annual general meeting is a legal requirement for companies in many jurisdictions. It ensures that the company is compliant with regulatory requirements and allows shareholders to exercise their rights and participate in key decision-making processes.
In conclusion, the primary purpose of a company's annual general meeting is to review financial statements, elect directors, approve dividends, discuss matters of common interest, and ensure compliance with legal requirements. It serves as an important forum for shareholders to engage with the company's management and hold them accountable for their actions.
Explore Courses for B Com exam
What is the purpose of a company's annual general meeting?a)To discuss matters of common interest among shareholders.b)To ratify decisions made by the directors in their meetings.c)To review the company's financial statements and elect directors.d)To conduct meetings with creditors and auditors.Correct answer is option 'C'. Can you explain this answer?
Question Description
What is the purpose of a company's annual general meeting?a)To discuss matters of common interest among shareholders.b)To ratify decisions made by the directors in their meetings.c)To review the company's financial statements and elect directors.d)To conduct meetings with creditors and auditors.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the purpose of a company's annual general meeting?a)To discuss matters of common interest among shareholders.b)To ratify decisions made by the directors in their meetings.c)To review the company's financial statements and elect directors.d)To conduct meetings with creditors and auditors.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the purpose of a company's annual general meeting?a)To discuss matters of common interest among shareholders.b)To ratify decisions made by the directors in their meetings.c)To review the company's financial statements and elect directors.d)To conduct meetings with creditors and auditors.Correct answer is option 'C'. Can you explain this answer?.
Solutions for What is the purpose of a company's annual general meeting?a)To discuss matters of common interest among shareholders.b)To ratify decisions made by the directors in their meetings.c)To review the company's financial statements and elect directors.d)To conduct meetings with creditors and auditors.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for B Com. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of What is the purpose of a company's annual general meeting?a)To discuss matters of common interest among shareholders.b)To ratify decisions made by the directors in their meetings.c)To review the company's financial statements and elect directors.d)To conduct meetings with creditors and auditors.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of What is the purpose of a company's annual general meeting?a)To discuss matters of common interest among shareholders.b)To ratify decisions made by the directors in their meetings.c)To review the company's financial statements and elect directors.d)To conduct meetings with creditors and auditors.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for What is the purpose of a company's annual general meeting?a)To discuss matters of common interest among shareholders.b)To ratify decisions made by the directors in their meetings.c)To review the company's financial statements and elect directors.d)To conduct meetings with creditors and auditors.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of What is the purpose of a company's annual general meeting?a)To discuss matters of common interest among shareholders.b)To ratify decisions made by the directors in their meetings.c)To review the company's financial statements and elect directors.d)To conduct meetings with creditors and auditors.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice What is the purpose of a company's annual general meeting?a)To discuss matters of common interest among shareholders.b)To ratify decisions made by the directors in their meetings.c)To review the company's financial statements and elect directors.d)To conduct meetings with creditors and auditors.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice B Com tests.
Explore Courses for B Com exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev