Annual general meetings (AGMs) represent more than just a statutory obligation: they are valuable opportunities for companies to showcase key achievements, address challenges transparently, and proactively engage with shareholder concerns.
Just Share’s new AGM guide provides companies with a practical guide to planning and executing effective, compliant hybrid AGMs, making them useful and productive for both the company and its shareholders.
Just Share has attended over 95 annual general meetings (AGMs) and asked over 330 questions relating to climate change, corporate governance, environmental impacts, remuneration and transformation. This extensive experience of attending AGMs before, during and after the Covid-19 pandemic has yielded valuable insights for companies, shareholders, and other stakeholders.
Just Share’s AGM guide includes best practices for planning and conducting AGMs, as well as an overview of the South African regulatory environment governing AGMs.
New CIPC Guideline on electronic AGMs
On 31 October 2024, the Companies and Intellectual Property Commission (CIPC) issued new guidance for electronic AGMs. The guidance supports Just Share’s advocacy on effective, compliant AGMs that do not breach shareholder rights.
CIPC’s Guideline 1 of 2024 states that:
“A company that chooses to conduct an AGM electronically should allow for:
- Matters to be raised for consideration as an item of business of the AGM.
- A combination of written, verbal, telephonic and video questions to ensure reasonably effective participation in the AGM.
- An agenda to be provided at the start of the AGM, thus allowing shareholders to know when they will be called upon to ask questions.
- Shareholders to be able to see and know who else is attending the AGM online and to be able to interact with each other without an intermediary.
- All participating board and executive members to be visible in real time for the entire AGM, regardless of who is speaking.”
Greer Blizzard, senior governance analyst at Just Share, says “Since the Covid pandemic and the pivot to electronic AGMs, we have experienced a wide range in the quality and effectiveness of annual general meetings. A few demonstrate a concerted effort by the board and management to ensure compliance and facilitate dialogue, but many companies appear to be using technology to stifle engagement and shield themselves from public scrutiny, which erodes trust and frustrates shareholder engagement. We hope this guide will help companies to prioritise shareholder-centric meetings which mirror the in-person experience as closely as possible.”
