Webinar on Society AGM – Takeaways

It is that time of the year when societies across India are gearing up for their Society AGM. ADDA conducted a webinar on ‘All You Need to Know About Society AGM’ on Saturday, 21st August 2021. 

A panel of experts who headed the webinar offered insightful knowledge on Pre, During, and Post conduct of the webinar, best practices, and much more.

The panel consisted of: 

1. Iswar Prasad Dixena, Secretary – Prestige Sunrise Park-Birchwood AOA, Bengaluru
2. Sudhindra Shirguppi, Chairman, DB Woods CHS, Mumbai
3. Rushikesh Mali, Director of S. R. Enterprises, Accounting service Partner
4. Sunil Deshpande, Consultant for Cooperative Housing Societies
5. Vishal Masurkar, Deployment Manager, ADDA  

The Webinar Takeaways

AGM Pre Compliance

• As per MCS act 1960 section 75 and Model Bye-laws No. 94 (A) in Maharashtra, every society has to conduct an AGM every year before 30th September. 

• In case, society fails to do so, they should at least inform the registrar. If the registrar isn’t convinced with the reason, he/she can take strict action under section 75(5) of the MCS act and Bye-Laws no. 94(B). 

• As per Bye-Laws No.99, MC should give a clear 14 days notice to the society members. Management Committee should put the notice of AGM on the Society Notice board. 

• As per Bye-laws No. 100, to conduct the AGM, a minimum of 2/3 of the total number of members in the society or subject to a maximum number of 20 members should be present. 

To understand the new guidelines for conducting AGM in Maharashtra, refer to this blog.

Agendas To be Discussed in the AGM

Annual Report of preceding cooperative year: Balance sheet and Income and Expenditure –

• The Balance sheet should be in the statement of accounts should be prepared. Auditor has to submit the same balance sheet in the form ‘N’ and it should be approved by the MC and the same will be approved in the AGM
• Audit report presented by the statutory auditor will be provided in Part A, B & C
• Part C consists of observations given by auditors, it has to be approved by MC
• Lapses by CHS shall be covered and discussed with society members
• Rectifications done in the report shall be submitted in form ‘O’ to the sub-registrar by discussing with the MC. 

Annual Budget –

• Expenditure of CHS has to be discussed with the Managing Committee as well as members of the society. 
• All surplus should be shared with members or taken as an investment under the reserve fund. 
• MC to discuss on Annual Reports of the Management Committee, financial statements.
• MC should discuss the auditor report, audit rectification report, and the final budget. 

Minutes of the meeting –

• Has to be drafted and finalized by the Secretary within 3 months of AGM and should be circulated with the members of the society within 15 days from the MC meeting. 
• If there are any special decisions to be taken/upcoming projects, they should be discussed in the meeting with GB approval. 
• In case the election is due, the local authority who will conduct the election shall be discussed with society.
• In case there is any communication from local bodies, the same shall be discussed with society members. 

Conducting Online AGM

For current FY 2020-21, AGM must be completed by 31st December 2021 using OAVM. 

Unique requirements for Online AGM via OVAM – Additional disclaimers to be mentioned in the notice – (Timestamp – 31:15 to 34:43)

Selection of Vendor for OVAM 

ZOOM or Microsoft Teams are the 2 best cost-effective technology for Housing Society AGM. 

Other options include Google Suite Basic

Check Timestamp 51:30 – 53:28 to understand the difference between the features and pricing of the above AV tools. 

• Provide detailed steps and instructions (videos) to members on (Laptop/Mobile) –
• How to Join the AGM 
• How to raise hands
• How to chat etc.
• How to Unmute 

Vendors must be actively involved in Actual AGM to oversee and handle technical issues. Vendors must also provide Post AGM reports. 

AGM Preparations (Digital)

• Prepare detailed PPT of all agenda points – One or Two slides per Agenda
• Send presentation deck as a draft to all members through email/ADDA seeking comments or questions
• Define all resolutions as polls for release during AGM 
• Summarize all Questions/Letters as received from members and define the responses in the presentation slides to be taken up after all agenda points are covered. 
• Additional questions from members to be taken up based on Chats and/or Raise hands in order of sequence. 

Actual Conduct of Online AGM 

• Ensure good internet speed and connectivity 
• Conduct the AGM only using a laptop, its built-in mic, and speakers. 
• AGM presenters must log in using their own member ID on their mobile device so they can register their vote for the resolutions. The device must be muted. 
• AGM presenter must be a co-host and must log in using a general ID
• Take printouts of all slides in A4 for noting down comments from members, resolution approvals, proposer, and seconder names. 
• Enable Online recording of complete AGM session (Video recording for offline AGMs)
• The waiting room is mandatory to ensure rightful members are permitted to join the AGM 
• Have 2-3 support staff as co-hosts
• Preferably take additional questions after a set of agenda points are covered

Post Online AGM – Drafting Minutes 

• Convert presentation deck into speaking minutes with agenda items as presented and discussed. 
• Update attendance data as received from the online portals
• Update poll data for all resolutions as received from the online portals and screenshots
• Include pre-received questions and responses provided during the AGM
• Additional questions and responses as recorded during the AGM to be included at the end of the minutes

How to conduct AGM with the help of ADDA?

–  Check timestamp 1:01:26 – 1:07:37

The Q&A Session

Q: What if the draft minutes are not circulated on time? What action and next step to be taken?

A: If the draft minutes are not circulated within a specified time period then members can complain to the MC and rightfully ask the draft minutes to be circulated. In case MC fails to provide the same, members can complain to the Registrar.

Q: What are the new MC Election Guidelines? 

A: Presently up to the 30th of August, no Managing Committee can conduct elections due to certain restrictions. No reservations have been received from the government. However, up to 30th August, MCs with more than 250 members can conduct the elections. 

Q: How is the secrecy of ballot maintained in E-Voting?

A: When ADDA is used for e-voting, The resident is assured of the fact that even the MC won’t be able to get access to who they have voted for because of complete privacy. When reports are downloaded from ADDA, it shows only the different vote counts.

Q: If a society has been registered under the Apartment Owners Act 1972, does it need to submit or file the audit reports for the AGM with the registrar on the regular basis? 

A: The audit, filing of the balance sheet is mandatory in every state. Societies have to close the book of accounts before September and make sure they are audited, verified and the compliance part is completed. 

Q: Have election norms and guidelines been notified under the MCS act or Rules? In the absence of the same, what are the challenges being raised? Please clarify.

A: In Maharashtra, the government has not allowed a Housing society to conduct E-elections. The government is yet to take a call on this. For now, only mechanical election is allowed.