Most limited companies are required to hold an Annual General Meeting, or AGM of shareholders at which decisions are taken on the company's business.
The 'ordinary' business of the AGM is repeated every year and includes accepting the company's accounts for the year and fixing the proportion of a company's profits that will be paid back to shareholders as a dividend.
The company directors often take this opportunity to put forward other business requiring the agreement of shareholders, such as setting the limits on the number of shares that can be issued in the following year.
