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What is AGM (Annual General Meeting)?

The annual general meeting is the meeting of a co-operative society's members at which the accounts for the year are presented and approved, the board and supervisory committee report, elections are held, and dividends on share capital and interest or rebates on deposits are declared. Its requirements are set by co-operative law and by the society's own bylaws.

A real Kenyan example

A member who attends the AGM sees the audited accounts, votes on the distribution proposed by the board, and can question the board directly rather than learning the outcome afterwards.

Why it matters

The AGM is where member ownership becomes real rather than nominal. It is the one point in the year at which the accounts are opened, the board is accountable, and the distribution is decided, and members who never attend have delegated all of that.

FAQs

Can every member attend a SACCO AGM?
Attendance and voting rights are set out in co-operative law and in the society's bylaws. Larger SACCOs commonly use a delegate system, where members elect delegates who attend on their behalf. Check your own SACCO's bylaws.
What happens at a SACCO AGM?
Typically presentation and approval of the audited accounts, reports from the board and supervisory committee, elections, declaration of dividends and rebates, and approval of the budget and any bylaw amendments.
Who decides the dividend?
The board proposes and the members in general meeting approve, within the framework set by co-operative law and the society's bylaws. It is a decision about the year that has been, not a rate set in advance.
What is one vote per member?
Co-operatives are democratically controlled, and voting is generally on the basis of membership rather than the size of a member's shareholding. This is one of the substantive differences from a company.

Related terms

Supervisory CommitteeBylaws (Co-operative)SACCO DividendInterest Rebate (SACCO)

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