The Importance of the Annual General Meeting for a Medical Aid Fund
An Annual General Meeting (AGM) is a formal gathering convened by the Board of Trustees of a Medical Aid Fund, open to all registered members and, where applicable, interested members of the public. The main purpose of the AGM is to promote transparency, accountability, and member participation in the operations and governance of the Fund.
Each member of the Fund has one voting right, and the AGM serves as a platform for these members to receive key updates and exercise their rights in relation to the Fund’s affairs.
Each member of the Fund has one voting right, and the AGM serves as a platform for these members to receive key updates and exercise their rights in relation to the Fund’s affairs.
Purpose of the AGM
The Trustees are obligated to arrange and host the AGM annually. During the meeting:
- The Principal Officer and Board of Trustees present the Annual Report, which includes financial performance, strategic developments, and activities of the past and coming year.
- Members can ask questions, raise concerns, and engage with the governance structure of the Fund.
- Members vote on critical issues such as: appointment or reappointment of Board Trustees, approval of Trustee remuneration, appointment of auditors and approval of the audited financial statements.
If a member is unable to attend the AGM in person, they may appoint a proxy — typically another member — to represent them and vote on their behalf. Every member has a legal right to assign a proxy, ensuring their voice is still heard even in their absence.
Medical Aid Funds are required, in terms of good corporate governance and Fund rules, to hold AGMs annually. These meetings are essential because:
Things to Consider Before Surrendering Your Policy
Premature withdrawal or surrender of your policy may result in:
- Trustees report on the Fund’s performance and operations.
- Members are informed of changes in benefits, contributions, and Fund strategy.
- Transparency is promoted, and members are given oversight of how their contributions are being managed.
Why Should Members Attend?
Member attendance is critical to a successful AGM:
- A quorum (the minimum number of members required to legally hold the meeting) must be met, as defined in the Fund’s rules.
- Members vote on key issues affecting the Fund, including elections and remuneration.
- Attending the AGM allows members to hold the Trustees accountable and ensure the Fund is being managed in their best interest.
- Members get access to important documents, such as the audited financial statements, and can ask questions directly about the Fund’s financial health and long-term strategy.
Typical AGM Agenda
AGMs may also include presentations from external service providers such as actuaries or investment managers, offering insights into the broader medical aid and financial landscape.Member attendance is critical to a successful AGM:
- Chairperson’s Report
- Presentation of audited annual financial statements
- Report on investments
- Report on changes in contribution rates and benefits
- Trustee remuneration disclosure
- Member Q&A session
According to the Medical Aid Funds Act, the Board of Trustees must submit audited financial statements to the Registrar within six months after the Fund’s financial year-end. The AGM facilitates the approval of these financials by members before submission