The Annual General Meeting (AGM) is a statutory requirement under the Companies and Allied Matters Act 2020 (Section 237) for all companies whether public or private. It should be held every 15 months.
It provides shareholders with the opportunity to review the company’s performance, receive audited financial statements, question management, and approve key corporate decisions such as the appointment and removal of directors and auditors.
Annual Returns, on the other hand, are the official confirmation to the Corporate Affairs Commission that the company is still in existence and operating in compliance with the law. It reflects the company’s current status, structure, and management. Failure to file Annual Returns creates the impression that the company is inactive or non-compliant.
Non-compliance with AGM and Annual Return obligations attracts statutory penalties, exposes the company and its directors to regulatory sanctions, and may affect the company’s credibility with banks, investors, regulators, and business partners. In some cases, prolonged default can lead to the company being struck off the register held by the CAC.
Compliance is not optional and deadlines are not advisory.
Convene the AGM; file the Annual Returns and Protect the company and its officers.