Guide to Society Annual General Body Meeting (AGM) Rules
Every housing society is required to conduct an Annual General Body Meeting (AGM) to ensure smooth management and transparency. The AGM is a platform where members discuss and approve budgets, annual accounts, elections, and other important society matters.
Not holding an AGM within time can lead to penalties and disputes. In this article, we explain society AGM meeting rules, legal notice requirements, who can attend, and how minutes should be maintained.
What is an Annual General Body Meeting in a Society?
An Annual General Body Meeting is a legally mandated meeting held once a year by every registered housing society.
Purpose of AGM:
- Approval of annual financial statements and audit reports
- Presentation of budgets for the next financial year
- Elections of the managing committee when due
- Approving maintenance charges, repair funds, and new resolutions
AGM vs General Body Meeting (GBM)
| Feature | AGM (Annual General Meeting) | GBM (General Body Meeting) |
| Frequency | Mandatory, once a year | Can be called anytime |
| Agenda | Accounts, elections, budget approval, official compliance | Urgent matters, policy changes, community issues |
| Legal Requirement | Compulsory under Cooperative Societies Act | Not always compulsory |
| Notice Period | Fixed by law (varies by state) | Shorter notice allowed |
Rules for Conducting an Annual General Body Meeting
Every society must follow certain AGM rules as per state cooperative laws:
- The AGM must be held once every financial year, usually before September 30 (varies across states).
- The meeting requires a minimum quorum of members to be valid.
- Only agenda points listed in the notice can be discussed.
To shift the date of AGM, first and foremost people need to seek permission from the Registrar of Societies. Additionally, they will need to submit a reason behind this delay. If the registrar is not satisfied, they can appoint another authorised official to preside over the meeting.
Primarily, people discuss essential rules regarding finances, policies, and future course of action of the society. Generally, an infinite number of topics can be discussed in the AGM. However, all the essential decisions that need to be taken in an AGM include the appointment of auditors, election of new members, changes in expenses, and so on.
What if Society AGM is Not Held Within Time?
- The registrar of cooperative societies can issue penalties.
- The managing committee may lose its authority.
- In serious cases, an administrator may be appointed to manage the society.
Also Read: Flat owners association rules and regulations
AGM Notice Rules in Housing Society
AGM Notice Period
- Most cooperative society bye-laws require a 14 to 21 days’ notice before the AGM.
- The notice period for AGM of housing societies may differ across states, so always check specific local laws.
AGM Notice Format for Housing Society
A proper AGM notice format should include:
- Name and registration number of society
- Date, time, and venue of meeting
- Agenda items for discussion (budgets, elections, accounts, proposals)
- Signature of the secretary or authorized person
Agenda of the Annual General Body Meeting in Society
There can be various agendas behind conducting the annual general meeting. These include:
- Review and approve membership applications
- Admit new members to the society
- Elect chairman/president for the meeting
- Form the managing committee for the year
- Decide monthly charges (maintenance, sinking fund, property tax, parking, water, etc.)
- Approve or revise additional charges, if any
- Review expenses and finalize borrowing limits
- Assign committee members to specific posts
- Appoint internal auditor and provisional members
- Approve society rules and regulations for smooth functioning
- Authorize bank account operations and cheque signatories
- Discuss new opportunities for society development
Who Can Attend an AGM?
Attendance rules are based on cooperative bye-laws:
- Members: All registered society members can attend and vote.
- Associate Members/Joint Owners: May attend but some states restrict their voting rights.
- Tenants/License Holders: Cannot attend or vote unless specifically authorized.
- Proxies: In many societies, members can authorize another person to vote with prior approval
Minutes of the Annual General Body Meeting for Housing Society
During the AGM, there is a specific person who is assigned the task of recording the minutes of the meeting (MoM). Usually, the previously elected presiding officer records the MoM. You should note that there is a minutes of society agm notice format, which makes recordkeeping easier.
Some importance of MoM of AGM are as follows:
- Maintaining the MoM accurately is essential as it serves as a legal record for the discussions occurring and decisions made during the meeting.
- It ensures accountability and complete transparency among the members of the housing society.
- In case any dispute arises regarding the decisions made in the meeting, the MoM of the AGM serves as a crucial document for resolving disputes.
- With the help of the MoM of AGM, people can track the progress of the decisions made, understand past discussions, and serve as a reference for future meetings.
The points above clearly highlight the essence of recording the MoM of AGM.
Role of Managing Committee in Annual General Body Meetings
If you are a member of the managing committee, you will be playing an essential role during AGMs. Listed below are some of the crucial measures that you can take to ensure there are no glitches in the AGM:
- First, set an appropriate date for the AGM so that all members can easily attend it.
- Finalise the room or spaces where the AGM will be conducted
- Prepare the notice as per the housing society agm notice format and distribute it amongst stakeholders
- Get the signatures of the Secretary, President, and Treasurer to sign the accounts after they have been audited
- Finalise the auditors and their compensations for the next year
- Compile the annual report of the society for AGM and distribute it among members
- Obtain and compile the discussions of the previous AGM to track progress
- Prepare a list of the documents that will be revised during the AGM
- Keep the books of accounts ready so that the members can review it
- Stay prepared to answer various questions the members might raise
- Oversee various administrative details, like printing of reports, distribution of requirements, and so on
What are Some Aspects of the Society Annual General Meeting?
The AGM is held once a year to discuss the performance and strategies of the society. Following are some crucial aspects of the AGM, that you will need to consider:
- It offers a platform for members where they can discuss the progress of the society over the last year and future proceedings.
- The success of the AGM, requires an appropriate date, the right venue, sending notices on time to the members, and careful planning of other events.
- It is essential for every society to have a constitution that can decide on the conduct of AGM.
- Defining the agenda of the AGM gives a direction to the meeting so that all the discussion points can be covered.
- Usually, members get the right to vote on various matters, empowering them to make a decision on the course of action.
NoBrokerHood and AGM Management
Managing AGMs in housing societies can often become time-consuming and prone to disputes. This is where digital platforms like NoBrokerHood can simplify the process.
How NoBrokerHood Helps in AGMs
- Digital Notices: Societies can send AGM notices instantly to all members through the app, avoiding delays or communication gaps.
- E-Voting: Members can vote securely through the app, which simplifies decision-making and increases participation.
- Minutes Recording: Post-meeting, societies can upload and share minutes of the AGM with members directly on the platform.
- Transparency: With records stored digitally, disputes over communication or decisions are minimized.
Benefits for Housing Societies
- Saves time and paperwork
- Ensures higher member engagement
- Complies with society AGM meeting rules digitally
- Creates an accessible record of notices and minutes
All Solutions by NoBrokerHood
Summary
Once you are aware of the Housing Society AGM meeting rules, make sure that all the committee members and other participants adhere to them. For legal advice regarding the conduction of AGM, you can contact professionals at No Broker. We have professionals to guide you through every step and ensure that your housing society functions like a well-oiled machine.
Frequently Asked Questions
Yes, you must distribute the AGM notices 21 days in advance. If it is not possible, you must issue notices at least 14 days before commencing the meeting.
The AGM notice format for the housing society includes details like the date and time of the meeting, duration of the meeting, a signature from the director, chairman, secretary, venue of the meeting, and so on.
No, only the members of the housing society can attend the meetings and voice their opinions on various factors.
No, the family members of the house owners are not allowed to attend the AGM of the society. Only the person whose name is on the sale deed of the house in the society can attend these meetings.
Insufficient disclosure of the minutes of the meeting to the community members can render the AGM invalid.