What is the AGM?
The Annual General Meeting is the opportunity for all members to make their voices heard and for the board to account for their stewardship of the organisation over the last 12 months. Holding an AGM is a legal requirement and allows the board to report back on its activities over the year.
What happens at an AGM?
First we review what happened at the last AGM, the board and various of its members present their comments about the past year, auditors will be appointed for the coming year and finally we discuss the trading outcome with specific reference to the decisions that have been made regarding its apportionment to reserves and dividends.
How does the AGM impact on members?
An important consideration is the payment of a dividend on members’ deposits. The organisations rules preclude the payment of a dividend if the organisation does not generate a trading surplus for the year. This means that decisions on dividends are made in consultation with the credit unions auditors and in line with its regulatory responsibilities.
The board also has responsibility to ensure that legal requirements in regards to capital adequacy and investing for the longer term needs of the business are reflected in decisions on the disposal of any trading surplus.
The AGM is also an opportunity for the members to vote on the composition of the board in respect on nominations and re-elections, on various rule amendments and changes and on other resolutions which may be proposed.
How can members be involved?
Each member has one vote which is counted by a show of hands and decisions are based on a majority principle. There is no casting vote by the Chairperson of the meeting, that individual has the same voting rights as any other member.
The meeting is attended by the organisations auditors which affords an opportunity for members to raise any queries about the year end accounts .
To learn more about credit unions