The current climate of having virtual AGMs is borne out of necessity rather than convenience due to the current Covid-19 pandemic. Global players like Amazon and Starbucks are scrapping physical meetings while local banks such as DBS and OCBC have already made the move to announce virtual AGMs during this time.
Post-pandemic, as companies get increasingly global, the trend is certainly moving towards having virtual AGMs. Many tangible benefits such as lower costs and increased participation are evident in a virtual AGM compared to a physical one. A move in the right direction would be to start with a hybrid option – where AGMs are conducted physically and virtually at the same time. The companies can then gauge the overall efficacy of such a move before deciding on having future AGMs 100 per cent virtual, provided their Articles of Association and the broader Companies Act allow it.
The very notion of having a successful virtual AGM would itself ensure that the boxes of shareholder engagement and corporate transparency have been ticked. This is because both the company and the shareholders must play their part in ensuring the security of the platform, the log-in passwords and the execution of proxy forms for voting if needed.
To view my thoughts on Business Times, visit this link: https://www.linkedin.com/pulse/adapting-new-virtual-reality-mario-singh/?published=t
