| For many Boards,
the Annual General Meeting (AGM) is a dreaded but necessary evil. Some
prefer to avoid it altogether, and others take pride at being able to
conclude it in the shortest possible time.
The costs of AGMs can be substantial. Therefore, from a pure ROI angle
(Return On Investment), it is incumbent on Boards to maximize the value
of such meetings.
Specifically, the value of an Annual General Meeting is as follows:
- Accountability: The
governing body should report on progress made. Time should be provided
for the audience to raise questions and concerns. The dialogue should
be substantial and meaningful. Some Chairpersons squander this opportunity
by quickly asking if there are any questions on a report, pausing
ever so briefly, and then – with a sigh of relief (“I
survived this”) - proceeding to the next item of business. Some
don’t even spend any time highlighting the key points in the
annual report. What’s the big rush?
- Succession: Usually,
the annual general meeting is the time when rotation in leadership
occurs. In some organizations new leaders are elected at the AGM,
and in others the election is concluded by mail ballot before or after
the AGM. In either case, new leaders (or continuing ones) should be
given an opportunity at the AGM to articulate their vision and state
how they intend to serve the members in the coming year.
- Member Input: An
AGM should enable members to give input and direction to their elected
governing body. The organization’s bylaws should stipulate clearly
when these directions are binding (e.g.: resolutions to amend the
Bylaws) and when they are advisory. It is good practice for a governing
body to proactively introduce strategic issues for member input and
advice at an AGM, well before any decisions on them are finalized.
- Community Building:
An AGM is an ideal time to celebrate successes and build a sense of
community among the members. Looking beyond the motions that need
to be adopted at an AGM, it is a good idea to structure networking
events, awards ceremonies, and guest speakers on timely topics (if
not at the AGM itself, then in conjunction with it).
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