ICGN's CEO warns online-only AGMs come at the expense of shareholder rights and diminishes board accountability
As the proxy season is in full swing, with hundreds of asset owners and corporates holding their AGMs this and next month, a leading voice in the industry has come out to criticise the format of some corporate meetings.
In a nutshell: Now the pandemic is gradually behind us, companies should stop holding virtual-only AGMs.
At least that is the message from industry heavyweight Kerrie Waring, the current CEO of the International Corporate Governance Network (ICGN), which comprises of investors responsible for assets under management of around $70 trillion and seen as a driving force in corporate governance and investor stewardship worldwide.
Waring today cautioned against a rise in the number of companies organising only-only AGMs following changes in regulation in many markets.
She told Net Zero Investor this comes at the expense of shareholder rights, diminishing board accountability.
However, "companies must commit to provide for hybrid AGMs to allow global investors to have the option of virtual or live participation," Waring said.
"I encourage regulators to adequately consult with shareholders and stakeholders in the event any changes to regulation or legislation regarding the format of AGMs, particularly matters impacting shareholder rights, are being considered.”
ICGN
© ICGN - International Corporate Governance Network
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