Do you still hold Annual General Meetings?

If so, this may save your business time and money.

From 1 November 2010 most Isle of Man companies can dispense with holding an Annual General Meeting

The Department for Economic Development has published the Companies Act 1931 (Dispensation for Private Companies)(Annual General Meeting) Regulations 2010, which come into force on 1 November 2010.

What does this mean for my company?

At present all 1931 Act companies have to hold an Annual General Meeting (AGM) at least once each calendar year. This takes time and costs the company money. The new dispensation regulations allow companies to make an elective resolution to dispense with holding an AGM.

An elective resolution cannot be retrospective so you must make sure that your company is up to date with its AGMs and filing requirements.

Whilst there is a small cost involved in making the elective resolution, this cost will be recouped the following year. The basic cost of holding an AGM can be between £150 and £200 per year.

Can all companies elect to dispense?

No, the facility is only available to private limited companies incorporated under the 1931 Act. The regulations specifically exclude charities that are required to comply with section 5(7) of the Companies Act 1986.

Section 5(7) of the Companies Act 1986

Where a charity is a company, its Memorandum of Association shall state the charitable objects of the company and accordingly the capacity, rights, powers and privileges of the company shall be exercised only for the purpose of giving effect to those objects.

If you wish to take up this opportunity, please contact us to discuss your requirements.

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