Cyprus requires practically every company to have an annual general meeting. Additionally, it is one of the year’s major business events, which everyone who wants to register my company name in Cyprus should know about.
Numerous elements must be planned and coordinated to execute a good yearly conference. It might be difficult if you are unfamiliar with the procedure and have no idea what to do during the meeting.
This article will give a comprehensive guide for identifying the major problems and legal requirements for a well-run annual meeting.
What does an annual general meeting in Cyprus consist of?
The annual general meeting (AGM) in Cyprus is an annual gathering of the company’s shareholders. It is also known as the annual shareholder meeting and the annual stockholder meeting.
The first AGM must be held within 18 months of the company’s formation date, and subsequent meetings must be held annually. In addition, there must be no more than 15 months between the last AGM and the following one.
Principal AGM activities
Typical activities during the annual conference are as follows:
- Declaring dividends or modifying dividend policy; Reviewing financial accounts and the balance sheet
- Considering reports from directors and auditors;
- Appointing directors (if positions are up for renewal) and filling vacancies on the board of directors;
- Appointment of auditors and acceptance of their compensation.
AGM Procedures
In Cyprus, an annual general meeting may be held either in person or electronically.
A typical AGM is a crucial occasion for your company’s members to interact directly with one another. Physical encounters may not be possible because of the restrictions imposed by the Covid-19 epidemic.
As a result, the Companies Law has permitted AGMs to be held electronically. If you want to have an electronic meeting, you may need to hire a technology solution provider for assistance with the technical aspects.
What are the prerequisites for annual general meetings to be held in Cyprus?
Your company’s annual meeting must adhere to several regulatory requirements, most of which are notification, quorum, and directors’ accounts and reports.
- Meeting announcement
Before the AGM, you must provide members with clear notice of the meeting.
The standard time of notice should be at least 21 days. The location, date, and time of your AGM should be included in the notice of meeting.
Additionally, the following information should be included in the notice of the meeting:
- A detailed description of the procedures that shareholders must follow in order to participate and vote at the meeting, including:
- the shareholders’ right to ask questions related to items on the agenda;
- the ability to select one or more proxies who may vote, participate, speak, and ask questions on your behalf;
- and the procedure that will be followed for electronic voting or voting by mail.
- The record date, specifying that only shareholders as of the record date are eligible to participate and vote at the AGM.
- How to access the whole texts and draft resolutions.
Generally, your company’s notice of the meeting must be exhaustive and clear so that shareholders may comprehend it and determine whether or not to attend.
- Quorum
A quorum refers to the minimum number of participants required for a meeting to be valid. A quorum is required in order to convene an annual meeting.
The quorum requirements are determined by your organization’s articles of incorporation. If there are no specified quorum rules in your organization’s bylaws, three members present in person will constitute a quorum.
- Accounts and reports of the directors
You, as the company’s director, must deliver the following papers at the annual shareholders’ meeting:
- financial statements;
- directors’ report;
- the auditor’s report, as required by law.
According to the Companies Act, copies of these financial statements and reports must be accessible at least 21 days prior to the AGM.
In addition to a fine, any violation of this rule will be a criminal crime.
This is one of the important things that everyone who wants to register a business in Cyprus should know. To find out more about doing business in Cyprus, you can contact Fintech Harbor Consulting consultants.