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16 December 2020 | Comment | Article by Gerallt Jones

Do You Need to Hold an AGM? – Part three of our ‘Virtual Meetings’ series


In the third part of our blog series on ‘virtual meetings’, our Corporate and Commercial team addresses whether organisations are required to hold an AGM.

The answer depends on the provisions of an organisation’s governing documents. Company law no longer requires a private company to hold an AGM. This includes charitable companies. However, if your organisation’s governing documents include an explicit requirement to convene and hold an AGM, those rules should be followed and failure to do so will constitute a breach of the governing documents.

If there are no specific provisions in your governing documents but an AGM has been held as a matter of good governance, you may be able to dispense holding an AGM as long as you are not subject to any sector-specific legislation or financial covenants with lenders requiring an AGM to be held.

You should check your governing documents as soon as possible to establish your organisation’s obligations and seek legal advice if there are any uncertainties, particularly if you wish to dispense with holding an AGM.

If your organisation is a private or charitable company which required to hold an AGM and you are concerned how this can be achieved in a way that is safe and best suited to your shareholder/members, please read our article: Holding Remote Meetings: Advice for Unincorporated Charities and Charitable Trusts

If your organisation is a charitable trust or an unincorporated charity which is required to hold an AGM and you are concerned how this can be achieved in a way that is safe and best suited to your trustees/members, please read our article Holding Remote Meetings: Advice for Unincorporated Charities and Charitable Trusts.

The virtual meetings series:

“Meeting” Life After the Corporate Insolvency and Governance Act 2020 – Part One of our ‘Virtual Meeting’ series Blog | Hugh James

Holding Remote Meetings – Part two of our ‘Virtual Meetings’ series Blog | Hugh James

Do You Need to Hold an AGM? – Part three of our ‘Virtual Meeting’ series Blog | Hugh James

Holding Remote Meetings: Advice for Unincorporated Charities and Charitable Trusts – Part Four of our ‘Virtual Meetings’ Series Blog | Hugh James

Our Top Tips for Planning and Conducting your Virtual Meetings – Part 5 of our ‘Virtual Meetings’ series Blog | Hugh James

If you would like any advice or assistance with reviewing or amending your governing documents, please contact our Corporate and Commercial Team.

Author bio

Gerallt Jones

Partner

Gerallt is a partner and head of the corporate and commercial team. Since joining Hugh James in 2005, Gerallt has led the team to be a leading player within the corporate and commercial market, advising clients including the Welsh Government, Princes Gate Water and the Development Bank of Wales.

Gerallt also has particular expertise in the sport and food & drink sectors, leading Hugh James’s relationships with clients in these sectors including the Welsh Rugby Union and Braces Bakery.

Disclaimer: The information on the Hugh James website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. If you would like to ensure the commentary reflects current legislation, case law or best practice, please contact the blog author.

 

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