An annual general meeting, commonly referred to as the AGM is a meeting held once a year by a majority of organisations in Australia.
The purpose of an AGM is for organisations to report operational activities and financial results to members. It requires a number of legal obligations, like electing members to reside on the governing Board or Committee.
Whilst legally bound to address obligations, an AGM also provides an incredible opportunity to connect with members, to communicate organisational wins and to allow members to ask questions.
Understanding your organisation’s obligations is a good place to start and your constitution will outline your responsibilities. These guidelines will determine your plan and objectives in relation to holding an AGM.
This may include;
- holding your AGM within a certain time period
- the matters that you must discuss at the meeting
- how much notice you need to provide to you and how you need to provide that notice
- where the meeting must be held
- who is eligible to attend and vote at the meeting
It is important that you meet the annual deadline with each State and Territory having different statutory requirements, typically 4 to 6 months from the start of the financial year.
Organisations are required to give notice, typically 21 or 28 days however again this is determined by your constitution. You also need to be aware that if you have any special resolutions at the AGM additional notice may be required.
It was general practice to advertise a notice of AGM in the newspaper but now direct email provides organisations a more efficient, greater reach and cost effective option.
Your Company Secretary or Governance specialist consultant like myself, will prepare the necessary documents and circulate them to all members and office bearers prior to the meeting, ideally 2 weeks before.
What needs to be sent prior to the meeting?
Nominations for board vacancies should be circulated well in advance to the AGM. It is important that you have all eligible candidates return completed nominations prior to the AGM.
A detailed agenda is a must for a successful outcome. This provides members with all the relevant information that will be discussed at the AGM.
My preference is to circulate the Notice of AGM and nomination forms in the first instance, offering 28 days notice. I then like to distribute the full agenda package two weeks prior to the AGM date.
Inclusions in the AGM Agenda package should be;
- The Annual Report, which will include financial statements, a summary of activities, barriers and successes throughout the year and possibly tracking in relation to a strategic plan or a preview of what is planned for the year ahead,
- Minutes from previous years AGM
- Nomination forms for office bearers
- Notice of AGM
I mentioned earlier that AGM’s offer a great opportunity to celebrate success, acknowledge the contributions of staff, members, volunteers and engage your members in the future direction of the organisation.
I would suggest where suitable guest speakers, industry experts, media and sporting personalities are included in the agenda, it is a great way to engage your audience, increase member attendance and educate your members on industry or motivational topics.
The timing of your AGM is important, like with every approach in business, understanding your audience is vital. What suits your members? Consider meetings in the evening or early morning and provide refreshments.
I have a number of Agenda examples available, please email me directly if you need a copy.
What needs to happen post the AGM
Points to consider;
- Produce the minutes as soon as possible after the meeting. It is equally important that you have an accurate record of the meeting.
- The minutes have to record every decision made, and have to include the proposer and seconder for all resolutions including the approval of financial statements.
- You may also need to submit annual financial and information statements. There may be fees or penalties for late submission.
- You may need to complete documents that notifies the regulatory bodies about any changes to your board or constitution.
The Governance Institute of Australia offers a number of courses, workshops and downloads to assist you.