Annual General Meeting of Cooperative Society

Update: Registrar Extends AGM Date upto 30 Sep 21 and Existing Committee upto 31 Dec 20

What is an Annual General Meeting (AGM)?

An Annual General Meeting (AGM) is a yearly event which is compulsory as per the society bye laws and Gujarat Cooperative Society Act 1961, for every cooperative society (housing society/apartment complex/commercial complex/plot etc). These are conducted to discuss major issues and collectively reach a consensus and find the best possible solution.

Most common discussions in an AGM comprise of Minutes of previous meeting, financial issues, society maintenance issues, steps taken by the management committee for the betterment of living conditions,  Appointment of a new managing committee, auditor, etc.

As per Act, first AGM of society is to be conducted within 3 months of formation of society. Post which yearly AGM should be held within 6 months of closure of the financial year. Incase Registrar extends the tenure, then AGM can be conducted within such extended tenure.

Pre AGM List of Activity for Committee Members

Before the managing committee hosts the AGM, below are the list of activities which needs to be completed.

1. Internal committee members  meeting to finalize the date and the agenda of the AGM.
2. Preferably all committee members to be present in AGM.
3. Decide venue of the meeting. It is usually held within the premises of the society.
4. Send notice to  all members of the society.
   • Notice to be sent 14 days in advance of the AGM date.
   • AGM notice to be pasted on Society Office Notice Board
   • AGM notice has to be sent on the registered address of members available with the society.
   • AGM notice should contain AGM date, place, time and agenda.
5. The chairman, secretary and treasurer need to sign on the audited accounts.
6. Appoint auditor for the next year and their remuneration.
7. Prepare the annual report and committee report which highlights the works undertaken by the committee in the previous year and the plans for the next year.
8. Circulate the annual report to all members of the society.
9. Get the minutes of last year’s AGM and collate a list of all resolutions passed during that year.
10. Also, the committee members should be prepared to answer questions from the residents.

How to conduct AGM

1. Attendance of the members to be recorded with their signatures against their unit.
2. Once the quorum is established, the Chairman welcomes all and the meeting is addressed.
   • Quorum: 2/5th of the total members or 25 whichever is less. Incase of no quorum, meeting to be adorned for half an hour.
   • After half an hour, whatever member of members present will be considered as quorum.
3. Speaker for the house is selected and takes up minutes of the previous Annual General Meeting / Special General Meeting and approve the same.
4. To present list of activities done by committee during last year, circulars issued, balance sheet and Income – expenditure statement and get it approved by members.
5. To approve the distribution of profit / transfer to reserve and surplus or any other reserve.
6. To approve the governing committee’s report on the corrective steps taken towards the audit observation / defects and to authorise the managing committee  to take necessary actions.
7. Discuss the appointment of auditors for the next financial year and their remuneration.
8. Election of committee members by way of secret ballot or if election rules are already accepted than take a note of the election result accordingly.
9. To approve framework of the activities, capital expenditure, operational expenses  to be undertaken in the next financial year which society needs to do as prepared by the committee
10. Agree on the maintenance amount payable by the members for the next year for the service provided by the society and authorize committee to take necessary actions.
11. Incase managing committee wish to remove any member from the society, such proposal can also be brought by committee during AGM.
12. To consider and pass amendments to Bye-Law
13. Managing Committee can get society staff or any other contractors related rules approved.
14. All other proposal as allowed by act or byelaws can be brought forward and disposed off.
15. To transact and other business of which due notice has been given or brought forward with permission of the Chairman.
16. Any member present in AGM with approval of 2/3 members present in AGM, can raise any points except for removal of any member from society or changes to be made to byelaws of society.
17. Vote of Thanks.

Post AGM

Post the Annual General Meeting, the minutes of the meeting to be circulated among all members and residents of the housing society. It is vital that all are made aware of the decisions taken in the AGM.

Regulations

As per Cooperative Society Act

1. Every society shall convene the general meeting of its members within a period of six months of closure of the financial year to transact the business.
2. At every annual general meeting of a society, the committee shall lay before the society a balance sheet and income and expenditure account for the year in the manner prescribed by the Registrar by general or special order
3. Along with Balance sheet there also be a report by committee with respect to
   • State of the society affairs.
   • If any  amount is proposed to carry to any reserve either in such balance sheet.
   • If any amount recommended for payment by way of dividend, bonus, or honoraria to honorary workers.
   • Committee report shall be signed by chairman or any other member authorised to sign on behalf of the committees.
4. At every AGM, the Balance sheet, income & expenditure account, the auditor’s report and the committee’s report, shall be placed for adoption and such other business will be transacted as may be laid down in the bye-laws and of which due notice has been given.
5. Where any officer of the society, whose duty it was to call a general meeting within the period, fails without reasonable excuse to call such meeting or to comply with sub-section (2), (3) or(4), then—
   • If such officer is a servant of the society, the Registrar may by an order in writing impose on him a penalty of an amount nor exceeding one hundred rupees.
   • If such officer is not a servant of the society, the Registrar may by an order in writing declare such officer to be disqualified for being an officer or a member of the Committee, of the society or for being elected or appointed to any officer of the society, for such period not exceeding three years as he may specify in the order.
   • Provided that before making an order under this sub-section, the Registrar shall give or cause to be given, a reasonable opportunity to the officer to show cause against the action proposed to be taken in regard to him.

Rules as per bye-laws

1. Any member present in AGM with approval of 2/3 members present in AGM, can raise any points except for removal of any member from society or changes to be made to byelaws of society.
2. Quorum for AGM will be 2/5 of the members of the society or 25 members which ever is less.
3. Incase members present are less than quorum, AGM will be postponed for half an hour whatever member of members present will be considered as quorum and will carry out required activity of AGM.
4. In case where voting is done for any specific points and equal votes is received in favour and against, then chairman will get an additional vote to cast.
5. Any resolution passed in earlier AGM / SGM cannot be brought for change / cancellation within 6 months of such passing of resolution in the AGM except for the approval of cancellation resolution by the Registrars.

Members

As discuss earlier articles “Rights and Duties of Members“, one of the duty of member is to attend AGM. Sec 28A of Gujarat Cooperative Society Act gives further details. Extract of the same is given below:

Attendance of meeting by members

It shall be the duty of every member of a society

• To attend atleast two meeting of the general body within a consecutive period of five years.
• To utilize minimum level of services as prescribed in the bye-laws.

Provided that a member

• Who does not attend atleast two meeting of the general boy for a consecutive of 5 years or
• Who does not utilize minimum level of services as prescribed in the bye-laws for a consecutive period of five years in respect of such societies as the state, government may, by notification in the official gazette, declare;

shall be liable to be removed by the Registrar as the member of the society.

Provided further that before removing such a person from the membership of the society, he shall be afforded an opportunity of being heard and if his explanation is found satisfactory, his name shall not be removed from the membership of the society.

Who can Attend the AGM

In case of co-ownership of a flat/house, the first name on the share certificate is allowed to attend. In case they cannot, the second name can attend with written permission from the first name. No proxy or a holder of power of attorney or letter of authority is eligible to attend an Annual General Body Meeting of the Society on behalf of a Member of the Society.

Reference

1. Gujarat Co operative Societies Act, 1961
2. Model Bye-laws