What is an Annual General Meeting (AGM)?

An Annual General Meeting (AGM) is a mandatory yearly meeting of shareholders and directors in a company, making option B the correct choice. The primary purpose of an AGM is to allow shareholders to receive updates on the company's performance, approve financial statements, elect or re-elect directors, and discuss any significant business matters that require attention. This meeting is a key aspect of corporate governance, providing a platform for directors to communicate with shareholders about the direction of the company and to maintain transparency within the organization.

In contrast to other options, an AGM is not a spontaneous gathering of employees, as it is a scheduled and formal event that is required by law for public companies. It also differs from a conference for external stakeholders, as the AGM primarily focuses on internal company affairs and the interests of shareholders rather than broader stakeholder involvement. Lastly, it is not a social event for company staff; while social aspects may occur in corporate culture, the primary function of an AGM is to address serious financial and strategic issues rather than to serve as a social gathering.