AGM (annual general meeting)

Under the Companies Act 2006, only public companies must hold an AGM. Most RTM companies, residents' management companies and freehold companies are private companies, so whether they must hold one depends on their articles (and, for RMCs, sometimes the leases). The prescribed RTM model articles don't require one, but many blocks hold one anyway because it's the easiest way to keep members informed.

Notice

• A general meeting of a private company needs at least 14 clear days of notice, unless the articles require more (s.307).
• The period is counted in clear days: leave out the day the notice is given and the day of the meeting (s.360). If you post the notice, allow for deemed serviceDeemed serviceA legal rule that treats a notice as received at a particular time, such as a set number of days after posting, whether or not the recipient actually read it then. too.
• A majority of members holding at least 90% of the voting rights can agree to a meeting at shorter notice (s.307(5)–(6)).

What usually happens

Directors report on the year, present the accounts and next year's budget, and answer questions; members vote on any resolutions, such as appointing directors. Keep minutes: companies must keep records of meetings and resolutions for at least ten years.

Members can also decide things without a meeting, by written resolutionWritten resolutionA decision of a private company's members made in writing instead of at a meeting, which passes once enough of the eligible members' votes have agreed to it..