What Is An AGM And Why Are They Important For Your Club’s Good Standing
Written by yoursportsresource on November 29, 2022
What Is an Annual General Meeting?
An Annual General Meeting (AGM), otherwise known as an AGM, is a mandatory yearly meeting for the general membership of the organization.
Depending on the state, there are laws that govern how the meetings should be carried out, but AGMs are required in order to keep your charitable status. Think of the AGM as a way to keep the members fully informed of the key practices and events for your club. You as a board must be transparent with your members and fully comply with all external and internal regulations.
What Happens at an AGM?
During an AGM, members are presented with the financial statements accompanied by a financial year in review presentation. Depending on your state’s charitable requirements, constitution, and by-laws, there will be other reports that will be required to be provided to the members.
These reports must be provided and presented for full disclosure to your members. In addition, the members need to “accept” the information at the AGM. This acceptance is how you as a board stay transparent with your members, presenting all important and key activities for their understanding and knowledge.
AGMs are also an opportunity for association members to vote on key issues. Those key issues can be to make changes to the constitution or by-laws or to undertake a large capital project, such as building a new facility.
Because the AGM takes place only once per year, an AGM also represents one of the only opportunities for members and the board to communicate. As such, it’s a time for:
Providing reports on the club’s activities
Providing a chance for members to provide feedback
Opportunity for new members to become acquainted with the business side of the blub
General Rules For An Annual General Meeting
While each state carries different rules, there are some general rules that apply to all.
AGMs must be held on an annual basis. The first AGM must occur within 18 months of the association being incorporated and within a prescribed period at the end of every financial year after that
The minutes from last year’s AGM have to be presented and approved
The financial statement must be presented and approved. Two committee members must certify that the statements are “fair and true”, meaning that they accurately reflect the position and performance of the club
Members must approve the actions taken by the board throughout the previous year. They may choose to ratify those actions or not
The board of directors must be elected for the following year
Appointment of the auditor for the following year
Why are AGMs Important
AGMs are important not only because they are a legal requirement, but so the Board and Coaches can get the support they need to conduct the business of the club. Often an attempt to move the club forward translates into a large undertaking both financially and operationally. In order for those to take place, the members must agree to and fully support the activity.
Failure to undertake these activities can put the club at risk. Not only reputational risk to the members and community, but non-compliance can put the club in a position of losing its charitable status.
Getting your Members Involved
To have a successful AGM, the members need to attend the AGM. Give your members plenty of notice and as much information as possible regarding the upcoming AGM. This way they can make sure they save the date and get themselves up to date on the information.
Feel free to give your members this tool on Why I Should Attend the AGM.
More Help for Your Sports Club
An AGM is an important endeavor and can be a bit overwhelming if you have never been a part of organizing one before. We are here to help, contact us for more information. email@example.com
Make sure you read How to Prepare for Your AGM.