In recent years, members of the LTDA have become increasingly frustrated with the lack of opportunity to engage with their association, influence its management, and obtain answers to questions about its affairs. In 2018, rather than deal with the serious questions raised, the LTDA commenced proceedings to expel a number of those members.
The last resort for the members of any organisation, in such a situation, would normally be to call a special members’ meeting.
The constitution typically requires 10% or 100 members to sign a requisition for a meeting, whichever is lower. This right is protected in law for limited companies under the Companies Act 2006.
However, the LTDA, as a co-operative society registered with the Financial Conduct Authority (the FCA) is not subject to company law – and the relevant legislation is silent on the rights of members to call a meeting. The only protection that members have, in a registered society, is the constitution itself.
In the case of the LTDA, its rules required 51% of the members to sign a requisition. In an organisation with 10,000 members, such a high threshold makes it practically impossible for members to call a meeting.
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