General meetings and AGMs
Meetings and decision making
Members’ meetings are known as general meetings and are closely regulated by the . General meetings are usually called by the board. If they do not do so, members holding at least 5% of the total voting rights of all the company’s members able to vote at the meeting can request one.
Annual general meetings (AGMs) are important and a special type of meeting of all the members of an organisation which should, as a matter of best practice, be held annually. This requirement will often be mandated in the governing document, which will also state the time of year to hold the AGM. Private companies are no longer required to hold an AGM unless they wish to or their governing document requires them to.
The purpose of an AGM is to:
- comply with legislative requirements;
- present the financial accounts to the members;
- report to the members on the organisation’s activities;
- ensure committee rotation happens in an orderly manner;
- consider and vote on rule changes and other recommendations;
- allow executives (be they remunerated, voluntary or nonexecutives) to have their questions answered and/or grievances aired; and
- allow the members to ask questions and provide feedback to the committee.
While there may be statutory or governing document requirements to hold an AGM, it should not be forgotten that these meetings play an important role in the democratic and community life of an organisation.
There are a number of