The Value of the Annual General Meeting

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).

Eli Mina, M.Sc., is a Vancouver-based consultant, meeting facilitator, mentor and coach. He has led a number of workshops for AXI on meetings and minute taking. He can be reached at 604-730-0377 or by e-mail at eli@elimina.com and his web site is http://www.elimina.com. Reprinted with permission from Eli’s Deliberations newsletter.