Which of the following is considered normal business at an AGM?

Study for the ICAEW ACA Certificate Level - Law Test. Dive into multiple choice questions and detailed explanations to prepare effectively. Get ready for your exam!

At an Annual General Meeting (AGM), certain actions and decisions are considered standard or typical, reflecting the primary responsibilities of the shareholders and the management of the company. Declaring dividends and appointing auditors falls directly into this category of normal business at an AGM.

Declaring dividends is a crucial decision made by shareholders, as it involves the distribution of profits to shareholders based on the company's performance. This decision impacts the financial well-being of the shareholders and reflects their return on investment.

Appointing auditors is another standard function at an AGM. Shareholders typically vote on the appointment or reappointment of the external auditors for the company. This ensures that the company's financial statements are audited by a qualified and independent firm, which is essential for maintaining transparency and accountability in financial reporting.

In contrast, changing company bylaws and administering employee evaluations do not typically occur at an AGM. Amendments to bylaws usually require a different process, often involving specific resolutions and perhaps a separate meeting. Employee evaluations are part of internal human resources management and are not relevant to shareholder decisions at an AGM. Setting the budget for the upcoming year, while important for company operations, is typically determined by management and not directly voted on by shareholders at the AGM.

Thus, declaring dividends and appoint

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