By Caroline Scott, Marketing Manager, CGISA
An Annual General Meeting (AGM) is a crucial event for any organisation, ensuring transparency, accountability, and stakeholder engagement. The company secretary or governance professional has a vital role in ensuring the AGM runs smoothly and complies with all legal and regulatory requirements. Here are ten key points to consider for a successful AGM:
- Advance planning: Start planning early by setting a clear timeline that includes key deadlines for notices, agenda preparation, proxy submissions, and regulatory filings.
- Regulatory compliance: Ensure that the AGM adheres to the requirements of the Companies Act, listings regulations, and the King IV Code to avoid legal pitfalls. Members can address their regulatory queries to our technical department.
- Notice and agenda: Send out the notice and agenda well in advance, ensuring it is clear, comprehensive, and meets statutory deadlines. Include key resolutions and relevant documents for shareholders to review. CGISA has some handy AGM templates for our members.
- Shareholder engagement:
Provide shareholders with multiple channels to engage, including pre-meeting Q&A sessions, proxy voting, and accessible meeting formats (physical, virtual, or hybrid). - Question and answer session: This is the most important part of an AGM, as shareholders have only one opportunity to raise their questions. Ensure that shareholders are not cut short and that their questions are properly addressed.
- Technology and logistics: Test all technical aspects, including AV equipment, virtual meeting platforms, and voting mechanisms, to ensure seamless execution and prevent disruptions. Be prepared to identify shareholders at an in-person meeting by having spreadsheets with ID numbers ready for shareholders to sign.
- Proxy management: Have a clear process for collecting and verifying proxy votes, ensuring that shareholders can exercise their voting rights efficiently and securely.
- Handling shareholder activism and meeting disruptors: Be prepared for shareholder activism by understanding key concerns in advance and having a strategy to address them. Establish clear meeting rules and procedures to handle any disruptions professionally and in line with governance best practices.
- Leveraging AI for AGM efficiency: Use AI-powered tools for agenda preparation, automated transcription, sentiment analysis, and real-time shareholder engagement tracking to enhance the efficiency and accuracy of AGM processes.
- Accurate record-keeping and post-AGM follow-up: Maintain detailed minutes of the meeting, capturing discussions, resolutions, and voting results. These records are essential for regulatory compliance and future reference. Distribute minutes and resolutions promptly, address any outstanding shareholder concerns, and complete all regulatory filings to finalise the process effectively.
By focusing on these key areas, company secretaries and governance professionals can facilitate a smooth and compliant AGM that fosters trust and confidence among stakeholders.
As an additional resource, you can also see Just Share’s AGM Best Practice Guide.
