It is AGM (Annual general Meeting) season and I have been to quite a few meetings lately. Generally, after I present the financial statements to the group, there is silence when I ask if there are any questions? No one says anything. I am pretty good at explaining financial statements since I have been both an accountant and a teacher for very long time. So it is possible that I do such an amazing job that there is nothing left to ask, but I don’t think that is the answer.
Typically the presentation of the financial statements at an AGM takes about 5 to 10 minutes which is not long enough to explain everything. My theory is that people are afraid to ask a question because they think that they might look stupid. However, they are going to be voting on approving the financial statements and I think it would be good if they understood the statements before they vote to approve them.