Hybrid or fully virtual shareholder meetings could become a long-term feature of the corporate landscape if they are run effectively, said the Monetary Authority of Singapore's deputy managing director Ong Chong Tee yesterday.
Mr Ong told a Securities Investors Association (Singapore) symposium: "What is important is that such new meeting formats should not compromise effective shareholder engagement, allow proper verification of attendees and voters, and facilitate accurate and secure voting processes."
He also noted that, despite Covid-19 travel restrictions and safe distancing measures that have made it difficult for in-person meetings to take place, it is still important for issuers to update shareholders and to "complete urgent corporate actions requiring shareholders' approval expeditiously".
At present, companies can conduct general meetings via alternate non-physical means until next June.
While this may raise concerns that there will be limited active participation by stakeholders, Mr Ong said measures have been put in place to "facilitate informed and effective participation".
These include requirements that companies should broadcast the meetings by "live" webcast, support proxy voting and allow shareholders to ask questions, and having these addressed ahead of the general meeting.
Substantial questions as well as follow-up ones must also be addressed by the board or management before or at general meetings.
However, Mr Ong noted that stakeholder engagement goes beyond annual general meetings.
They should also have up-to-date information on material changes in a company's business and operations so as to "make informed investment decisions", and issuers should "explain their business plans clearly, provide specific risk disclosures and engage in regular dialogues with their investors".
Above all, the responsibilities of directors are also "critical", said Mr Ong, adding that they are "stewards of a company's assets and its ongoing viability, and owe a duty to shareholders, regulators, employees, clients and even the general public, especially if the company has an important market role".
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