Question 1

Poor Attendance

Accepted Answer

Q: Each year our AGM attendance is diminishing. Only eight residents out of a possible 100 attended this year. In one of your recent magazine articles I read that it was not always the case that an AGM was a legal requirement. I would really appreciate receiving any information regarding this as the committee is becoming very despondent at the lack of interest and the AGM attendance just makes the situation worse. FPRA Chairman Bob Smytherman replies: The issue of poor attendance at AGMs is one we have been dealing with for many years. In a self-managed block like my own I would always recommend continuing with AGMs as this is the only way formally to hold the directors of the company to account by the shareholders. Trying to remove this looks like you are trying to hide something even if you are not. We have tried a whole variety of ways to get people to attend, such as changing venues - the pub is quite a good one - and include the formal business as part of a social evening. Not advisable if you have serious topics on the agenda where controversy is likely though. Time of meetings may also be an issue and transport might also be a requirement if the venue is not walking distance or you have leaseholders living elsewhere. Always encourage proxy voting by providing a form to send back. From our experience we have concluded if attendance is poor this means they are happy with the service you are providing. Ultimately as a limited Company the AGM arrangements are set out in the Articles of Association and should be complied with as far as possible. Company Law has changed many of the requirements for small companies, but ultimately the principal of transparency is the key one that should be maintained and strengthened. My view is the more open and transparent you are with the company business, the more content people are and less likely to attend a formal meeting especially if these are held in a cold hall on a winter evening. I would say don't get despondent at the lack of attendance. From our experience large numbers attending do not come along to thank you but to moan or criticise. If you need a full legal response about your options with AGMs if you send us a copy of your articles of association I could arrange one of our Company Law specialists to advise further on this? [Submitted December 2016]

Question 2

Poor Attendance

Accepted Answer

Q: Each year our AGM attendance is diminishing. Only eight residents out of a possible 100 attended this year. In one of your recent magazine articles I read that it was not always the case that an AGM was a legal requirement. I would really appreciate receiving any information regarding this as the committee is becoming very despondent at the lack of interest and the AGM attendance just makes the situation worse. FPRA Chairman Bob Smytherman replies: The issue of poor attendance at AGMs is one we have been dealing with for many years. In a self-managed block like my own I would always recommend continuing with AGMs as this is the only way formally to hold the directors of the company to account by the shareholders. Trying to remove this looks like you are trying to hide something even if you are not. We have tried a whole variety of ways to get people to attend, such as changing venues - the pub is quite a good one - and include the formal business as part of a social evening. Not advisable if you have serious topics on the agenda where controversy is likely though. Time of meetings may also be an issue and transport might also be a requirement if the venue is not walking distance or you have leaseholders living elsewhere. Always encourage proxy voting by providing a form to send back. From our experience we have concluded if attendance is poor this means they are happy with the service you are providing. Ultimately as a limited Company the AGM arrangements are set out in the Articles of Association and should be complied with as far as possible. Company Law has changed many of the requirements for small companies, but ultimately the principal of transparency is the key one that should be maintained and strengthened. My view is the more open and transparent you are with the company business, the more content people are and less likely to attend a formal meeting especially if these are held in a cold hall on a winter evening. I would say don't get despondent at the lack of attendance. From our experience large numbers attending do not come along to thank you but to moan or criticise. If you need a full legal response about your options with AGMs if you send us a copy of your articles of association I could arrange one of our Company Law specialists to advise further on this? [Submitted December 2016]

Poor Attendance

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