Is it important to attend the Annual General Meetings (AGM)s by companies you bought stocks in. What happens there? - Seedly

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Annual General Meetings (AGM)

Asked by Anonymous

Asked on 08 Apr 2019

Is it important to attend the Annual General Meetings (AGM)s by companies you bought stocks in. What happens there?

I recently received a bunch of annual reports in the mail, some of which are my parents and some are mine. I hardly see them go down for the AGM and I also hardly hear my peers who just started investing go down to these AGMs. So I wonder how important is it to go or not?

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Hi there,

I would strongly recommend you to attend if the stock you've bought is a sizeable one, its really interesting to listen to questions raised by others and how the management of the company answers them. The main reason why people attend AGM's is to interact with the management. I've heard questions such as why don't the company increase frequency of dividends (their dividend payout was on a yearly basis), how they intend to mitigate risks moving forward, how does one justify director fees given poor performance by the company.

It's akin to interacting with the Annual Report of the company, just that this time round, its a responsive one.

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Kenneth Lou
Question Poster

10 Apr 2019

Thank you billy!

Is good to go esp when you cant read the annual report.

There will be issues addressed if any by other savvy investors like me.

sometimes by attending, you get to make a faster decision on whether to

  1. add
  2. reduce or
  3. run

hope my replies hlp.

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Guo Hao Teo
Guo Hao Teo, Self-Taught Enthusiast at Personal Finance
Level 4. Prodigy
Answered on 09 Apr 2019

Here’s what I know so far having attended a few AGMs in the past years:

  • Uncle and aunties going to eat buffets
  • People in suits posting up slides of performance and highlights
  • Some disgruntled investors asking for change and questioning management salaries and bonuses
  • Special votes if any

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Some go for free food. Some go to ask questions to the management and see how the company is doing and what their plans are.

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