The owners of a company are its shareholders, who are some of its most important stakeholders. A company organizes a general meeting of shareholders to debate and resolve important business matters. Here are some key facts about general meetings.
The general meeting is essential to a company’s governance. It is the most important corporate event of the year for shareholders. Its structure is regulated by Spain’s law on corporations (Ley de Sociedades de Capital). The general meeting called within six months of the end of the previous fiscal year is known as the “annual” general meeting (or “AGM”). If a general meeting is held outside that time frame, it is “extraordinary” (“EGM”) and meant to address urgent or pressing matters that couldn't be settled at the AGM.
What's the purpose of a general meeting?
In a company’s general meeting, its owners debate issues within their purview to pass resolutions by the law and the company bylaws.
Before the meeting, the company issues an official “call to meeting” to shareholders, usually on the company website, in government bulletins (like the “BORME”, the official reporter of Spain’s companies registry), and in the news. The company can also send a meeting notice directly to its shareholders.
The call to meeting will show the date and time of the meeting; whether it will be in-person, virtual, or hybrid (which may be subject to special conditions set out in the company bylaws); the meeting agenda; and how to participate.