During pandemic restrictions many of us joined many videocalls – the technology proved to be an ally helping to replace face-to face meetings, although physical meetings are not entirely replaceable.
Between 2020 and 2022 many of the listed companies had webcasted (or even hybrid) general meetings of shareholders (“GM”). Surprisingly, after pandemic restrictions were terminated some of the companies renounced to webcast their GM.
Joining a GM may take few hours – from the commuting duration, the presentations during the meeting, Q&A session during the meeting and voting the items on the agenda. For an individual investor this may represent a day off if he / she decides to join the meeting in person. For busy individual investors webcasted meetings would save time, would give possibility to join remotely, and the opportunity to address questions to Board and to management.
Listed companies should seek the broadest access to and participation in GMs by a diverse range of shareholders. Whether attending virtually or in person, shareholders should have the opportunity to raise questions related to the meeting agenda and the activity of the company.
In case that listed companies want to implement a broadcasted GM, but without the possibility to have a remote voting, companies should provide online functionality for real-time questions to be submitted during the meeting orally or in writing/electronically.
Companies should also consider opening this Q&A function for written/ electronic questions from the start of the meeting.
The chair should ensure that questions are taken from all of the available channels for submitting questions.
Companies should consider explaining any methods of grouping
questions provided by shareholders who have submitted questions in advance of the meeting.
Some shareholders are tempted to speak more than expected and to change the subject of the GM to a personal one. Any character limitations on the length of questions submitted via virtual platforms should be reasonable (for instance 2 to 4 minutes per each shareholder).
For a better flow of the meeting, the company may use a facilitator to support the chair. If a moderated facility is used to manage questions during a virtually facilitated meeting, the company should highlight this facility and how it works. Such a facility should be operated in a manner consistent with the moderation of any Q&A involving those physically attending the
meeting.
The chair or the facilitator should make efforts to ensure a fair representation of questions are addressed.
The chair of the meeting (who may or may not necessarily be the chair of the board) should ensure that, so far as practicable, board members attend the meeting (virtually or physically) to respond to questions. Also, the key persons from the company should join the meeting to respond to question and to support the Board during the meeting. The chair should direct any relevant questions to those with the appropriate expertise.
The GM is the event of the dialogues between a listed company and its shareholders. We use technology when speaking with colleagues, acquaintances, friends or family. How difficult would be to extend this type of communication to GM? The cost for accommodating a broadcasted meeting is much lower than having a physical meeting with same number of attendees.