Real Estate Council of Alberta Fundamentals Practice Exam

How long should annual general meetings be held apart according to standard regulations?

1. Within 12 months

2. Within 15 months

3. Within 18 months

4. Within 24 months

The correct answer is: Within 15 months

Annual general meetings (AGMs) are integral to the governance of companies, providing a platform for shareholders to receive information about the business, ask questions, and vote on important matters. According to standard regulations, particularly those established under the Alberta Business Corporations Act, an AGM should occur within a certain timeframe to ensure that governance is maintained and shareholders have the opportunity to stay informed and involved. The correct timeframe for holding AGMs is stipulated to be within 15 months from the previous meeting. This interval allows sufficient time for a company to prepare its financial statements, ensure compliance with regulatory requirements, and provide adequate notice to shareholders, while also promoting active participation in corporate governance. Holding AGMs at this interval serves to strike a balance between allowing companies enough time to prepare and providing shareholders with regular updates on the company’s performance and strategy. Regular AGMs also foster transparency and accountability, which is critical in maintaining shareholder trust and engagement.