Probably you have heard about the company’s obligation to convene an annual general meeting (ordinary shareholders' meeting) of the Polish LLC/spółka z ograniczoną odpowiedzialnością. Why is it so important and when you should hold this meeting?
For reminding the company’s structure – check out my previous post: How to start a company in Poland.
First of all – there are two dates that you should remember about. It is on 31 March and 30 June each year. The first date indicates the last day to sign a financial statement for the last fiscal year. From this year (2019) you can sign it only using electronic signature having the appropriate certificate. Due to this special
The second date is 30 June and it is the last day for Annual General Meeting (AGM) but it depends on the fiscal year (it could be indicated otherwise in Articles of Association).
Notice to convene Annual General Meeting
Generally, the Management Board sends invitations to the meeting and should do so at least 2 weeks before the date of the general meeting. The notification indicates the agenda that will be binding during the meeting. It is extremely important that the shareholders are informed about all the required resolutions before the date of the meeting. Some of them are presented below but depending on the case, it is sometimes necessary to adopt additional resolutions i.e. resolution on the continued existence of the company, therefore, most companies are already deciding to use our assistance at this stage to be sure that the meeting will be held properly.
Usually, an invitation to a meeting is sent by registered letter, but for practical reasons, we recommend our clients that the company’s agreement* allows information about the meeting also in electronic form.
*company’s agreement – articles of association
The 4 most important resolutions of AGM in a polish company
- The Management Board report on the activities of the company. This resolution is a summary of what has happened in your firm in the last year. From this report, you should find out what is the financial situation of the company, what are the risks and effects of the board’s activities. The resolution with respect to this issue has to be adopted on General/Ordinary Shareholders' Meeting every year.
- Approval of the financial statements of the Company. This is the basic source of information about the financial situation that allows shareholders to decide about new investments, distribution of the profit or even change of the business profile.
- Distribution of the company’s profit or loss coverage. Shareholders' meeting shall decide whether all the profit should be allocated for the dividends or part of the profit spend on a different purpose. Shareholders should also adopt a resolution to cover the loss if it occurred. If the composition of the shareholders could shortly change it is also possible to indicate another dividend payment day. This may result i.e. that dividend will be distributed in a different proportion.
- Last resolution concerns granting discharge to the Management Board for performing its duties in the last financial year. This resolution is connected with any liability of the member of the management board against the company. Resolutions are also required for each member of the Board of Supervisors.
All of the resolutions indicated above are required by polish company law, but in some cases, it is needed to adopt other resolutions that are connected with the current situation of the company or specific provisions in articles of association.
How we can help you with the General Meeting?
If for some reason you can not take part in the Ordinary Shareholders' Meeting personally, you can appoint your proxy. It could be any trusted person or someone from our firm.
We can assist you with preparing the notification, agenda and the project of the Minutes of the AGM of your company as well as be your proxy at the meeting.
Do you know when the term of office of your board ends? We will check it for you and, if necessary, we will prepare all of the documents for new term of office.
Should you have any questions or concerns – let us know by e-mail or telephone. If you prefer contact via Whatsapp or Viber – write to us directly.