AFA to hold EGM within weeks

The AFA will announce the date of an extraordinary general meeting in the next three weeks.

31-Aug-2016

By Sarah Kendell

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The Association of Financial Advisers (AFA) has advised that member Mark Dunsford’s push for an extraordinary general meeting (EGM) of the association has succeeded and the date of the EGM would be announced within the next three weeks.

The announcement came after several weeks of uncertainty around whether a meeting to propose a special resolution that would reduce the AFA board’s policymaking powers would be called, following the AFA’s rejection of Dunsford’s first attempt to call an EGM after it was discovered several of the forms he submitted were incomplete.

Dunsford, the principal of advice firm Dunsford Financial Planning and a founding member of the Life Insurance Customer Group, which opposes the incoming life insurance framework legislation, began circulating an appeal through professional networking site LinkedIn earlier this month for AFA members to join his call for an EGM.

By 19 August, Dunsford had submitted 225 member forms to the AFA in support of his motion, which proposed a special resolution to change the association’s constitution so that the AFA board could not bring a negotiating position to government on any major incoming legislation without the prior approval of a majority of AFA members.

However, the AFA initially rejected Dunsford’s request, stating over 100 of the forms submitted were invalid because they were either duplicates, from non-members or had come from a member who had failed to adequately identify themselves.

Dunsford resubmitted 210 of the forms this week, having gone through his own process of verification with a current membership list given to him by the association, alleging many of the members who had originally joined his appeal had had their membership numbers changed by the AFA without notice.

“There are old and new number formats scattered across the data – this is a poor administrative tactic by the AFA and [they] should respect any member’s form with a name and signature,” he said.

The AFA yesterday afternoon confirmed Dunsford’s second submission had generated the requisite member numbers for an EGM to be called and that it would put his resolution to the members at a meeting date to be confirmed within the next 21 days.

“The resolution seeks to change the AFA constitution in a manner that reduces the policymaking powers of the AFA board,” it said.

“It is a special resolution under the Corporations Act and requires a 75 per cent majority support in order to be successful.”

The association added the EGM would occur by 30 October.

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