This archive report was first published on 15 September 2021.
As the world continues to grapple with the COVID-19 pandemic, cooperatives in Kenya are being forced to adapt to new ways of conducting business. One of the key areas that require attention is the holding of Annual General Meetings (AGMs) in a virtual or hybrid format.
According to the Gazetted Advisory on holding of Virtual general meetings for societies, registered under Cap 108 of the Laws of Kenya, and signed by the Registrar-General from the State Law Office on 12th August 2020, holding of virtual or hybrid AGMs must fulfill certain requirements. These include issuance of sufficient notice to members, agreeing on the selected software to use, specifying whether the general meeting is virtual or hybrid, guiding members on the manner in which the meetings shall be conducted, confirming the presence of quorum, and recording participants.
Cooperatives must also agree on how elections shall be conducted and tallied online, ensure no unauthorized persons interfere with the meeting deliberations, maintain confidentiality, and ensure the proceedings are reduced into writing in the form of minutes.
However, despite the need for cooperatives to adapt to new ways of conducting business, there are concerns that some cooperatives may not be prepared to hold valid virtual or hybrid AGMs. This is because the law requires cooperatives to amend their bylaws to provide for virtual or hybrid meetings, and some cooperatives may not have taken the necessary steps to do so.
As a result, cooperatives must be compelled to amend their bylaws and be sensitized or trained on how committees and members can comfortably participate in these new modes of communication without exposing themselves to manipulation by some of their leaders and staff.
It is also essential that cooperatives are prepared to roll out effective and valid virtual general meetings as desired. This includes having the necessary tools in place to use in tallying votes electronically, making audited accounts available to members at least 14 days prior to the D-Day, and transacting agenda on 'Reading and Confirmation of previous AGM minutes' in a format that is accessible to all members.
Ultimately, cooperatives must be prepared to adapt to new ways of conducting business, but this must be done with extreme care to avoid holding sham or shambolic general meetings that could have far-reaching ramifications to the financial well-being of these vulnerable entities.
