IoM Proposes Abolishing Mandatory AGMs
Tuesday, July 20, 2010
The Isle of Man Treasury has launched a consultation on a proposal to permit
private companies incorporated under the Companies Act 1931 to make an election
to dispense with the requirement to hold Annual General Meetings (AGMs).
Allowing private companies not to hold AGMs is recognized as acceptable practice
in many jurisdictions. The option is seen as particularly relevant for private
companies with a small number of shareholders, or with shareholders who are
also officers, as there is less need for AGMs to keep shareholders informed
of the company’s activities.
The Companies Act 1931 already gives the Treasury power to make regulations permitting
private companies to dispense with the requirements to hold AGMs. The proposed
regulations would include provisions giving shareholders power to prevent a
company from exercising an election to dispense with the requirements to hold
Interested parties are invited to submit comments on the proposals before September 1, 2010.