AGMs represent a significant convergence of management and members. This article discusses more about the Annual General Meeting of the Cooperative Society.
The Annual General Meeting, commonly referred to as AGM, is conducted by the Cooperative society. It gives the members of society a chance to get together and talk about issues in society once a year.
The AGM guarantees that the interests of the members are protected. An AGM may be the only opportunity for certain members to participate in the governance of many cooperative societies. The Annual General Meeting of the Cooperative Society must be held each year under legislative requirements.
What do you mean by Annual General Meeting?
Every cooperative society, including housing societies, apartment complexes, commercial complexes, and plots, must hold an Annual General Meeting (AGM) every year following the Gujarat Cooperative Society Act of 1961 and the society bylaws. These are held to talk about important issues, come to a consensus, and discover the best solution.
The most frequent topics of discussion at an AGM include
- The previous meeting’s issues
- Financial matters
- Concerns relating to society’s maintenance
- Actions done by the members of the management committee to improve living conditions
- Appointment of a new management committee
According to the Act, the society’s first AGM must be held within three months following the organisation of the society. Within six months of the end of the fiscal year, the annual AGM shall be held. The Annual General Meeting of the Cooperative Society can be held during the extended tenure if the Registrar decides to extend it.
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What are Activities that Need to be Performed by the Committee Members?
The bylaws of the cooperative society should specify how much notice must be given to members before an AGM. The members of the society should create and adhere to an organising plan to get ready for the AGM. The list of tasks that must be done is given below.
- The committee members of the cooperative society should decide on the AGM’s date, location, and time. Additionally, reserve a location to host the Annual General Meeting of the Cooperative Society. AGM attendance should ideally include all committee members.
- Notify the members of the message, and it should be done 14 days before the meeting. The notice needs to be attached to the Official Notice Board of the society. The society’s registered members must receive notice of the AGM at their provided registration addresses. AGM notices must include the meeting’s date, agenda, location, and time.
- Draft board resolutions and then invite members to submit their resolutions.
- Create the committee report and annual report, highlighting the activities carried out by the committee during the previous fiscal year and the intentions for the following fiscal year. Specify roles for the AGM, such as a chair, resolution officer, recording secretary, reports speaker, and so on.
- Send out a request for candidates to the members. Complete and distribute the list of board candidates before the AGM. Setup and last-minute preparations.
What Are the Steps for Holding the Annual General Meeting (Agm)?
During an AGM, many activities take place. The following is a list of them in the correct sequence to use:
- Keeping a record of the presence of the members and their signatures next to the flat number. The President or Chairman extends a warm greeting to all participants and then establishes the quorum. 2/5 of the total number of members, or twenty-five, is the quorum. If there is no quorum, the meeting will adjourn for 30 minutes. Whatever the number of members is present after 30 minutes will be regarded as a quorum.
- The house elects a speaker, and the AGM minutes from the previous year are read, approved, and affirmed.
- The financial report from the previous fiscal year is received and approved. Additionally, all other activities of the committee members get approved.
- To consent to the division of profits, transfers to reserves, and transfers of surplus or other reserves.
- To approve the report of the governing committee on the remedial measures taken for the audit findings/defects and to give the management committee the right to take appropriate action. A discussion on the employment of auditors and their compensation for the upcoming financial year is necessary.
- Election of new committee members through secret ballot; alternatively, if election procedures are already established, record the results as appropriate.
- Discussion about staff pay increases, such as those for security guards and maintenance workers. To conduct any additional business that has been properly noticed with the Chairman’s approval.
- Following the annual general meeting, the meeting’s minutes are distributed to all society committee members. Everyone must be informed of the decisions made at the AGM.
What Are the Regulations Regarding AGM?
According to the Cooperative Society Act, some regulations need to be followed. Every society must hold its annual general meeting with its members within six months of the end of the fiscal year to conduct business.
The committee must present the society with a balance sheet as well as an income and expense account for the year at each annual general meeting, according to the procedures specified by the Registrar in general or special orders. In addition to the balance sheet, other documents may be required, such as a committee report on the state of society at the time, any money advised to be added to a reserve in such a balance statement, and many others.
The chairperson or any other member with authority to affix a signature on behalf of committees must initial the committee report. Every AGM will include the acceptance of the balance sheet, auditor’s report, income & expense account, and committee report, in addition to any other business that may be specified in the bye-laws and for which proper notice has been given.
One of the most important tools for helping the committee members protect their interest in society is the annual general meeting. The society’s audited financial statements are approved, auditors are appointed, and new committee members are elected during the annual general meeting. It is crucial to keep in mind that holding an annual general meeting for a cooperative society is an easy but mandatory process for every registered society.
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