AFA board queries validity of EGM paperwork
A push by some risk advisers for an extraordinary general meeting (EGM) of the Association of Financial Advisers (AFA) has resulted in the organisation scrutinising the validity of the paperwork necessary to force such a process.
The AFA has issued a statement confirming it has received a number of forms calling for the EGM "purported to represent at least five per cent of the voting membership of the AFA".
The statement said the AFA was now required to verify each individual form, but preliminary checking had found that:
- a substantial number of duplicate forms have been submitted by the same persons
- some forms have been submitted by non-members
- some forms are incomplete
"It will take the AFA some time to correctly verify those forms that are incomplete or appear not to be from members. It is therefore not readily apparent that the statutory limit has been reached," the organisation's statement said.
It said the notice calls for members to vote on a special resolution that seeks to change the AFA's Constitution in a manner that restricts the member elected Board from deciding policy positions in relation to life insurance for a period of three years.
The statement noted that the special resolution would require support from at least 75 per cent of the votes cast to be passed.
A number of risk advisers are pushing for the EGM aimed at forcing a constitutional change on the AFA over what they claim was a lack of consultation around the processes which led to the development of the Life Insurance Framework (LIF).
Both the president of the AFA, Deborah Kent and the chief executive, Brad Fox have urged members not to support the changes which would flow from the proposed constitutional change, claiming they would effectively hamstring the board.
Recommended for you
Treasurer Jim Chalmers has handed down his third budget, outlining the government’s macroeconomic forecasts and changes to superannuation.
The central bank has announced its latest rate decision amid stubborn inflation and increasing geopolitical tension.
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
