AGMs

At this time of year we receive a number of questions from clients about AGMs. We thought we would list some of the most common questions.

Do the members approve the accounts?

The Co-operative and Community Benefit Society Act 2014 requires the accounts to be signed as approved by two directors and the secretary of the Credit Union. When the accounts are presented to the members they will already have been approved and finalised. Rulebooks should therefore state the  accounts will be submitted or presented to the members at the AGM rather than approved. The auditor’s report is also not subject to members approval and does not require a member vote. 

What needs to be covered in the AGM?

The Credit Union’s rulebook will cover most of the requirements of the AGM which will usually consist of:

• Presenting the accounts to the members
• Voting on any dividend
• Election of Directors
• Approval of Auditors for the next year

In addition, the Credit Union Board is required to report to the members on the areas specified in Section 10.1 of the PRA rulebook which lists the following matters:

1. the credit union’s compliance, or otherwise, with Depositor Protection 11 and:
   
   1. (a) Depositor Protection 12, 14 and those requirements of Depositor Protection 15 that relate to Depositor Protection 11; or
   2. (b) Depositor Protection 49 to 51,
   3. as applicable;
2.       whether the credit union has maintained at all times a policy of insurance complying with 2.10;
3.       any additional activities the credit union is carrying out and whether or not it is in compliance with any requirement in this Part applicable to those additional activities; and
4.        if the credit union has more than 15,000 members, whether or not it is in compliance with any requirement in this Part applicable to a credit union with more than 15,000 members.

• Make sure there are clear instructions to members on how the meeting will proceed and how to ask questions.

• Be careful with AGMs which are a mixture of virtual and in person. It can be very difficult for members joining virtually to hear. Microphones tend to pick up any noise in the main room. It is best to practice to ensure the sound quality is ok.

• It is best to have someone in control of the IT platform. To avoid background noise everyone should be on mute until they are speaking so it is best for someone to control microphones. Ideally you want someone who is not actively taking part and can focus on the IT requirements.

• Make members pre-register and ensure security settings are applied to avoid the entry of anyone not entitled to attend.

• Practice and make sure everyone knows their role. Board members should watch their backgrounds as well as testing speakers and microphones before hand.