Virtual / Hybrid Annual General Meetings (AGMs) Guide

As we know the Annual General Meeting of a company has always been conducted physically. Only recently the companies had to switch up the process and started to perform their AGM virtually.

So what is the perfect guide for a Virtual Annual General Meeting? How do know we are conducting it correctly?

Let’s have a look at some of the points for Virtual AGM.

What is a Virtual Annual General Meeting?

 The annual general meeting of a company which is widely known as AGM is a mandatory event for a company’s investors and shareholders in order to understand the current growth and future plans of the company. An AGM event consists o few factors such as

• Voting on company operations decision
• Ask questions
• Give feedback
• Dividend distribution discussion
• Compensation discussion

During the AGM, the directors and board members give a brief about all the important and critical information regarding the company. This includes annual performance, future strategies, current position, goals, and estimated growth timeline.

Virtual AGM is the same as a physical AGM. The difference is that it’s online and shareholders can do all the activities digitally and get access to the AGM from anywhere in the world.

 How different is a Virtual AGM from a Physical AGM?

Virtual AGM is when the AGM event is carried out by a digital platform, Any user is able to access the meeting from any electronic device from any place. In the virtual meeting, the shareholders are able to perform all the activities that they would do in a regular AGM. In Virtual AGM, the solution provides the same set of benefits and transparency that would have been available in a physical meeting. The format of the meeting remains unchanged.

Companies should record their virtual annual general meetings as they are legal proceedings.

Is the Virtual AGM platform secured?

Solutions for virtual AGM provide high-level security for attendees including the network connection. The main objective of AGM is to vote on difficult and important company decisions. THE virtual AGM platform employs robust security measures.

 The Virtual AGM platform provides transparency and proper authentication control and keeps unauthorized third parties from obtaining access to sensitive data of the meeting.

There is also an added security measure, companies while hosting virtual AGM should keep in mind about implementing contingency plans. I.e.proper preparation should be made in case of a power outage or unstable internet connection so that if the connection drops they have a backup and can ensure uninterrupted process

So is it Legal?

After the outbreak of the pandemic recently, there has been an increasing number of countries that have embraced the usage of virtual AGM Platform. The meeting format is not compliant everywhere, that is why it is a bit difficult to review statutory requirements prior to organizing a virtual AGM meeting in order to ensure the virtual format is allowed.

However, In Bangladesh by law, it has been allowed that the companies can conduct their Annual General Meeting digitally.  That is why in terms of conducting a virtual AGM in Bangladesh, the companies will not have to face any kind of problems regarding law issues.

Does conducting a Virtual AGM save money?

Organizing Virtual AGM reduces the regular cost of a physical AGM significantly. Because of Virtual AGM, Now companies will not have to spend money on booking the venue, arranging food and other refreshments. There will not be any spending on printing documents and post clean up process. More importantly, shareholders will not incur travel and accommodation costs to attend the AGM.

What about shareholder / Investor engagement during the AGM?

One of the perks of virtual AGM is that it allows shareholders or investors to give honest feedback and talk about more-difficult matters through anonymous questions, unlike traditional meetings. With lesser roadblocks to attend the meeting such as no travel and accommodation expenses, more shareholders find it easier to actively participate. At the same time, also not to miss out on any important details, the GOCON AGM solution provides features like Live voting and commenting.

Let’s talk about attendance!

During a physical AGM it has been seen that there are low attendance and disorganized communication, As a lot of shareholders giving their feedback at the same time in the same room creates a lot of chaos and gets difficult to understand or even address the feedbacks. Usually, when a significant number of shareholders are giving their opinions at the same time, the board of directors finds it difficult to truly understand the opinions or hear great advice.

To our surprise, It has been seen that after companies had to switch to virtual AGM. They noticed an increased number of attendance and additionally the voting system and giving results have also become more organized and accurate.  

While some shareholders still oppose virtual-only AGMs, there’s a growing need for this solution. Virtual AGMs cut travel and accommodation costs as well as the time necessary to organize and attend the meeting—the common problems that often contribute to poor AGM attendance.

Technology Considerations for Virtual Annual General Meetings

The technology that needs to be used in order to hold a virtual AGM should have features that make it easier for shareholder participation in the AGM.

Not only that, the solution needs to be evaluated yearly in order to check if the solution meets all of the goals and agendas of the meeting. if it does so then the solution could be used for a longer time period to conduct Virtual AGM.  if not, then the company needs to speak with the solution provider in order to make proper changes so that the AGM runs very smoothly.

How is Virtual AGM helping companies to become agile?

In recent times of the COVID-19 outbreak, The pandemic has aggressively caused businesses to take a loss or put at a halt completely. Except, for the organizations that had business resilience.

 As this has caused travel restrictions, The companies had to take the decision to shift their AGM to Virtual AGM. As this is a safe alternative to a physical meeting.,

However, The decision between meeting the requirements of the AGM and choosing the right solution depends on the complexity of the agenda and the number of attendees eligible to vote.

What should we keep in mind?

Due to the very newness of the process, many organizations might find it a bit complex and difficult to hold a virtual AGM for the first time. So, it is extremely important that companies find a suitable virtual AGM platform. Which will take care of any kind of queries, concerns, or misconceptions they might have about the virtual format. The honest truth is. With the right features and proper preparation and very good tech support, companies can easily hold virtual AGM meetings with great success.