It is in human nature to believe in individual ideas and opinions and to stand for it. Whether you are working in a mill, a factory, a corporate organization, or running your own business you have certain opinions and suggestions about things that can influence the surrounding environment around you. People listen to the ideas or opinions of one another and decide whether to act on a certain idea or opinion given by an individual based on the benefit it does to them or their business this process can be termed as a meeting.
Now there are meetings all around us whether we are meeting friends, meeting our employers, employees, or clients. Opinions get shared and acted upon in these meetings.
Meetings which are the most important and impactful are meetings like Annual Meetings and Board Meetings.
Annual General Meeting vs Board Meeting
The main difference between Annual Meeting and Board Meeting is that Annual Meetings are held once a year with the members mainly being the shareholders of that organization or enterprise. Board Meetings are held several times to review the performance and condition of the organization and enterprise by actions taken by the management.
Annual Meetings are held once in a year and are important to decide the future operations and activities of the organization or the enterprise to improve and get better results and to perform better in the field in which the organization is working in.
Board Meetings are held many times throughout the year to evaluate the performance of the organization or the enterprise and to hold the management responsible for conducting the actions and rules laid down by the members of the board.
Comparison Table Between Annual General Meeting and Board Meeting (in Tabular Form)
| Parameter of Comparison | Annual General Meeting | Board Meeting |
|---|---|---|
| Concept | The meeting is held once a year by keeping the interest of shareholders and investors in mind and to check the financial condition of the enterprise. | The meeting is held more than once a year to evaluate the performance by the management and to decide future actions for the organization. |
| Impact | Annual Meetings don’t have much impact on the overall organization as its main focus is in interest with the shareholders and the investors. | Board Meetings have more impact on the overall enterprise as its main focus is on deciding future actions and decisions for the enterprise for its betterment. |
| Advantages | Annual Meetings help in keeping up with the investment and financial status of the enterprise concerning the shareholders and Investors. | Board Meetings help maintain systematic growth and leadership required for the organization to grow and benefit from it substantially. |
| Disadvantages | Annual Meetings are held once in a year therefore it’s difficult to keep with the real-time performance of the organization. | Board Meetings are held numerous times which can consume the precious time of the management over things which don’t matter much. |
| Key Members | Members of this meeting include shareholders and Investors who have invested in this company or have a stake in this organization. | Members of this meeting include members of the board of directors who make important decisions related to the management of the organization. |
What is Annual General Meeting?
Annual Meetings are held for once in a year where all the shareholders and Investors of that particular organization or enterprise conduct a meeting on the financial matters and their return on investment.
Annual Meetings are transparency between the enterprise and the shareholders and Investors so that their investment and stake in the organization can be kept in check with their interest.
For example, if you invested a certain amount in a company then an annual meeting will be held every year where you would be able to look at the performance of the company and the return on your investment.
What is Board Meeting?
Board Meetings are held with keeping the growth of the company as the main theme of this meeting. Members in this meeting are selected by the chairman of the organization to main systematic growth for the enterprise.
Members of this Meeting see over the management and the work assigned to them to improve the efficiency and work of the organization.
Board meetings can be held any time and any number of times as it suits the members to make decisions and assign future operations for the enterprise.
Main Differences Between Annual General Meeting and Board Meeting
- No matter where the organization is located or in which country every organization must have at least one Annual Meeting in a year as it is mandatory even by the law so that the shareholder’s and Investors interest could be looked after and taken care of.
- Board Meetings can be held in an emergency or at any day and can be held numerous times to take important decisions and to look over the functioning of management of the organization or the enterprise.
- Annual Meetings are less impactful whereas Board meetings are more impactful and helpful.
- Board Meetings can sometimes consume a lot more time than annual meetings which can cause loss of work.
- Key members in Annual Meetings are the shareholder and investors whereas key members in Board Meetings are members of the Board.
Conclusion
Meetings hold an important place in the functioning of this world. Meetings help us to socialize and to decide our plan of action which could be beneficial for us.
Different kinds of opinions being shared under one roof all with the same aim of improving and getting better results whether you call it individual results or combined results.
Big organizations and enterprises hold meetings that can be divided into Annual Meetings and Board Meetings both of which are necessary for the better functioning of the management and growth of the company.
Meetings like this help to maintain an overall authority and viewpoint on the performance, vision, and growth of the company. No big goal can be achieved without combined effort and combined supervision.
References
- https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1286930
- https://www.sciencedirect.com/science/article/pii/S0304405X99000185
- https://journals.sagepub.com/doi/abs/10.1177/0893318903262242