Thinking about your 2021 AGM? This article provides you with ideas and solutions to increase shareholder engagement.
The current situation
The temporary Companies Act dispensation that was introduced via the Corporate Insolvency and Governance Act 2020 (CIGA) in June 2020 which allow companies to hold their AGMs virtually has been extended until March 2021 however the situation beyond this date remains unclear.
It’s safe to say that companies should be preparing their AGM as if certain restrictions relating to gatherings will still be in place.
While shareholders were relatively forgiving in 2020 when the majority of companies held their AGMs behind closed doors (80.7% of FTSE 350 AGMs), they are likely to be less so this year as companies have more time to plan and technology solutions have been tried and tested. While AGMs behind closed doors are of course legal, they disenfranchise retail shareholders who are unable to engage with the Board.
- The 2021 AGM and reporting season: Issues to consider – Norton Rose Fulbright
- Preparing for the 2021 AGM season—key insights from 2020 and areas for focus in 2021 – White & Case
- UK AGM Season 2020 Review & Highlights – FTI Consulting