Legal Eyes: this month Bates Wells & Braithwaite answers your legal FAQ:
We are a charitable company. It’s a hassle and expensive for us to post the accounts and AGM notices to all our members – can we use email instead?

Parts of the Companies Act 2006 which came into force earlier this year should help. They set out a framework for companies to communicate with their members by email. They would also allow you to also make documents available on a website instead of sending them to all the members individually.

You could even agree with members to communicate with them by text message – although this is not likely to be as useful! The provisions cover any company information or documents which are authorised or required to be sent under the Companies Act. This would include your annual accounts and reports, notices of general meetings and proxy forms.

Each member must individually agree and confirm their email address, for example when they join or renew their membership, before the charity can communicate with that member by email. You could also write to existing members to get their consent and confirm their email addresses.

To communicate by making documents available on a website, either each member must individually agree to receive documents this way, or the charity can amend its articles to permit it. If you amend the articles, you would still need to let the members know that the company intends to communicate with them via its website and give them an opportunity to opt to continue to receive documents by post (or email).

You also need to let all the members know when documents are available for them to view on a website. This would probably be by sending them a letter or email.

You may need to update your charity’s articles of association to make full use of the new provisions. Good membership records will also be crucial to be sure you are using the right form of communication for each member.

But for a charity with a large membership there could still be significant savings on printing costs and postage if you can use your website and/or email to communicate with many of the members.

Also, from this October, company law will no longer require accounts to be received by a general meeting (unless the charity’s articles require it). You would still need to send all members a copy of the accounts.

Other changes relating to company meetings take effect in October, which may also be relevant – I would recommend getting legal advice if you are thinking of changing how you communicate with members.

Stephanie Biden is a solicitor in the charity and social enterprise department at Bates Wells and Braithwaite

Bates Wells & Braithwaite
www.bateswells.co.uk