Live Webcasting & Video Streaming Concept

AGMs provide one of the few opportunities shareholders have to question the board, engage directly with management, and hear the views of other shareholders.

However, the outbreak of the Coronavirus is causing companies to rethink their arrangements for 2020 AGMs in light of potential bans on large gatherings, travel restrictions and the risk that venues selected for the meetings may cease to be available due to unexpected closure.

Where AGM notices have already been sent out, or are in the process of being dispatched, companies are urging shareholders to check their websites for AGM updates, and recommending that shareholders submit their proxy votes on resolutions to be considered at the meeting as soon as possible, in case they are not able to attend the meeting in person. They are also making clear that if AGM meetings are held, they will not necessarily take place in the usual format. Meetings are likely to be shorter in duration as presentations by the chair and other members of the board are kept to a minimum, and replaced by webcasts.

Problems for companies are exacerbated by the fact that in a number of jurisdictions, there is a legislative requirement for public companies to hold an AGM within a specified period following their financial year-end (within six months). Most choose to hold their AGM well before that six-month deadline, but some may want to consider pushing the date back further where practicable. In doing so, however, they incur the risk of having to postpone again and running out of time before the statutory deadline expires.

In Singapore and Malaysia, where listed companies are required to hold their AGM within four months of their financial year-end, waivers have been issued by the Singapore Exchange Regulation, granting companies with December 31 year-ends a further two months (to June 30, 2020) within which to hold their AGM to approve financial results, provided certain criteria are met. It remains to be seen whether a similar approach will be taken in other jurisdictions.