3.6 Annual general meetings
Societies are democratically owned and controlled by their members and general meetings are a method in which members can participate in the society’s governance and hold the board to account. Whether the AGM is online, in person or in a hybrid format, the annual report and accounts must be circulated to members in advance and presented at a general meeting.
This is a great opportunity for the society to report to members on the progress of the business and for members to hold the board to account on decisions made during the previous financial year. Presentation of the annual report and accounts should be accessible and transparent, with any implications for members’ capital, dividends and/or interest payments clearly spelt out as not all members may have the financial literacy required to understand a full set of society accounts.
As members are expected to receive the accounts at an AGM, they should be given ample opportunity to review the accounts in a reasonable timeframe ahead of the meeting so they are able to ask any questions of the accounts or find out further information if required.
Key agenda items relating to a society’s finances for an AGM:
- Presentation and receiving of the Annual Report
- Presentation and receiving of the Accounts
- Agreement of interest rate
- Appointment of Auditors (or vote to apply the exemption if applicable)