The full meaning of the AGM in the banking industry refers to “Annual General Meeting”. It’s a yearly occasion where directors, shareholders, and other directors of the bank get together. They discuss important issues such as how the bank is executing its budgets for its financial coming years and whether there are any major changes taking place.
The Annual General Meeting is where they will discuss issues such as the bank’s profit and loss and what’s to come in the coming months. Shareholders are able to ask questions, cast votes on important issues and express their opinions about where the bank’s business is headed.
The AGM is a huge discussion where everyone who is involved in the bank has a discussion openly. They scrutinize the financial statements, make decisions on dividends, and then choose or re-choose the chief executives. Shareholders are able to influence the decisions made by voting. This influences the bank’s policies and the way it’s run.
The AGM isn’t an event that is only formal. It’s an opportunity for shareholders to take part of the discussion. They are able to voice their concerns or ask questions, and also participate in making decisions. This way, the AGM keeps the bank open, accountable and allows everyone to feel involved in the manner that the bank is operated.