Annual Meetings
By: Dennis Gardiner, CPA, Partner | email
We have seen several significant changes in the format of many of our client’s annual meetings over the past few years. The size of the companies today, the number of locations, and the distance between those locations (or from the main office) can cause difficulties in getting good attendance. Mother Nature, our busy schedules, and planting and harvesting seasons limit the number of days available for companies to have good participation at annual meetings. As much as you like to see many members in the audience, you’d much rather see the active members, with whom you are conducting most of your business, in attendance. Sadly, the individuals who represent the best attendance are the older members - who are still members, just not generating your largest share of business.
Because of this we have seen a polarizing affect to the format of the meetings. There are those of you who conduct a business meeting merely to comply with your Articles of Incorporation and Bylaws. This might be held first thing in the morning in the board meeting room or lobby of the main office. It is held really as a formality; having conducted the board elections by mail ballots prior to the meeting. There are still a large number though, that hold a meeting in the “cooperative spirit”, providing a meal and discussing past operations and future plans.
In a period of two days, I had the occasion to go from one very well attended meeting that lasted nearly three hours for the business portion of the meeting (before dinner), to a meeting that took five minutes; with the only members in attendance being directors and employees. Both had quorums and both satisfied their legal requirement.
No judgment here… just as cooperatives continue to grow in physical footprint and members; is there concern that you could lose touch with members? Members today are so much larger and their business is that much more important to any one cooperative. Each cooperative has to find their own way to stay in touch with members and ensure their patronage. This is and will continue to be one of the many challenges management and boards of directors face today and tomorrow; particularly as they continue to grow or merge.
