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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 companyís 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 a meeting.

Interested parties are invited to submit comments on the proposals before September 1, 2010.