What happens at an AGM regarding board positions?

During an Annual General Meeting (AGM), it is customary for directors to be appointed or reappointed, which aligns with the principles of corporate governance and shareholder engagement. The AGM serves as a platform for shareholders to discuss important business matters, including the composition of the board. Appointments often occur following recommendations from the existing board and can include new candidates or re-election of incumbent directors.

This process enables shareholders to express their confidence in the board's leadership and strategy. It is an opportunity for shareholders not only to evaluate the performance of existing directors but also to consider new candidates who may bring valuable skills or perspectives to the company. While resignations can happen—for instance, if a director chooses to step down or is not re-elected—such occurrences are not a required component of the AGM.

The other options present scenarios that do not accurately represent standard AGM practices. For instance, while only existing directors may initiate some discussions, all shareholders typically have the right to vote, ensuring inclusivity in the decision-making process. Furthermore, it is not a requirement for shareholders themselves to run for board positions during AGMs; candidates for directorship can be proposed by the existing board and need not be limited to shareholders.