What is the purpose of an Annual General Meeting (AGM)?

The purpose of an Annual General Meeting (AGM) primarily revolves around key corporate governance functions, with a significant focus on reviewing and approving the company's financial statements. During the AGM, shareholders come together to obtain an overview of the company's financial health as presented in the financial statements, which include the balance sheet, income statement, and cash flow statement. This is a critical moment for shareholders to understand how well the company has performed over the past year and to engage in discussions regarding future strategies.

Moreover, the meeting serves as a platform for the board of directors to report on the company's performance, provide insights into business operations, and propose dividends for approval. By ratifying the financial statements, shareholders exercise their rights to ensure transparency and accountability within the company's operations. This approval is often a statutory requirement and forms an essential aspect of the corporate governance framework.

The other choices do not align with the primary objectives of an AGM. Discussing employee performance and compensation happens at different meetings and falls under human resources governance. Registering new corporate entities is a function that typically takes place through the relevant governmental agencies, rather than in a meeting of existing shareholders. Conducting employee training sessions pertains to operational management and is not a function of the AGM. Thus, the main focus of