Shareholders prefer hybrid AGMs over physical meetings for now
After its two-year hiatus as precedented by the COVID-19 pandemic, physical annual general meetings in Singapore are back with the easing of social distancing for large gatherings. However, companies and shareholders are lukewarm to proceeding with in-person meetings.
Last July, checks by The Business Times showed at least five companies conducted hybrid annual general meetings, including Mapletree Logistics Trust (MLT), Mapletree Industrial Trust (MIT), Mapletree Commercial Trust (MCT) prior to its merger with Mapletree North Asia Commercial Trust, Singapore Post (SingPost), and Azeus Systems.
Azeus, in its recent hybrid AGM, experienced an increased attendance, with 65 participants showing up for the physical AGM and 70 online participants. In a survey conducted by the virtual AGM solution provider, about 78.6% of shareholders were most keen on the hybrid format. 16.6% voted to do physical meetings, while 4.7% were likely to stick to entirely virtual meetings. All shareholders who preferred online meetings were based overseas.
With such a high number of shareholders preferring the hybrid mode, the top reasons include the ability to maximise reach, better engagement, and greater transparency. Despite the predisposition to the hybrid format, some companies will continue to hold fully virtual AGMs as their shareholders preferred the electronic means.
In May this year, Singapore Exchange Regulation (SGX RegCo) advises listed companies to ensure that shareholders are granted their “full meeting rights” — appoint proxies, ask questions, and cast votes — regardless of the AGM format. Yap Jia Rern, who heads Azeus’ ConveneAGM, said in a panel discussion entitled The Evolution of AGMs: The New Hybrid, that hybrid AGMs can bring the exact rights and meeting experience for virtual shareholders as though they are joining physically.
Moreover, Michael Tang, Vice President and Head of Listing and Product Admission at SGX RegCo, said that real-time electronic means for voting and communications will take part in guaranteeing full and substantial shareholder participation.
Read more about this news in The Business Times.
Last July, checks by The Business Times showed at least five companies conducted hybrid annual general meetings, including Mapletree Logistics Trust (MLT), Mapletree Industrial Trust (MIT), Mapletree Commercial Trust (MCT) prior to its merger with Mapletree North Asia Commercial Trust, Singapore Post (SingPost), and Azeus Systems.
Azeus, in its recent hybrid AGM, experienced an increased attendance, with 65 participants showing up for the physical AGM and 70 online participants. In a survey conducted by the virtual AGM solution provider, about 78.6% of shareholders were most keen on the hybrid format. 16.6% voted to do physical meetings, while 4.7% were likely to stick to entirely virtual meetings. All shareholders who preferred online meetings were based overseas.
With such a high number of shareholders preferring the hybrid mode, the top reasons include the ability to maximise reach, better engagement, and greater transparency. Despite the predisposition to the hybrid format, some companies will continue to hold fully virtual AGMs as their shareholders preferred the electronic means.
In May this year, Singapore Exchange Regulation (SGX RegCo) advises listed companies to ensure that shareholders are granted their “full meeting rights” — appoint proxies, ask questions, and cast votes — regardless of the AGM format. Yap Jia Rern, who heads Azeus’ ConveneAGM, said in a panel discussion entitled The Evolution of AGMs: The New Hybrid, that hybrid AGMs can bring the exact rights and meeting experience for virtual shareholders as though they are joining physically.
Moreover, Michael Tang, Vice President and Head of Listing and Product Admission at SGX RegCo, said that real-time electronic means for voting and communications will take part in guaranteeing full and substantial shareholder participation.
Read more about this news in The Business Times.
Posted Under: News