With the emerging trend of ESG (environment, social, and governance), companies are now looking into forwarding such initiatives into their strategies and management. Investors are now screening companies that are addressing environmental and social issues. One of their concerns is empowering diversity, equity, and inclusivity (DEI).
While most companies are integrating DEI efforts into the workplace, these efforts must be broadened to consider the relationship with shareholders. Annual general meetings, for instance, serve as the primary avenue for the board and stakeholders to communicate. How can AGMs support inclusivity for the shareholders and investors?
In this article, discover the inclusivity challenges in AGMs and how an electronic AGM platform can help empower inclusive meetings.
Three Issues of Inclusivity in AGMs
The abrupt transition to remote meetings has forced boards and shareholders to adopt unfamiliar digital tools in response to the global pandemic. Below are the challenges shareholders are facing with virtual and hybrid AGMs.
Digital Fluency and Capabilities
In the age of digitalization, the COVID-19 pandemic has driven more companies to join the transformation, as evident in digital processes and platforms. However, adopting advancements does not directly equate to digital-savvy boards. According to a recent study, only 24% of the companies have at least three (3) digital-savvy directors. Meanwhile, almost 55% of shareholders are within the age group of 55 years and above.
Because most shareholders are used to physical AGMs, the assumption is that not all of them are much acquainted with digital applications. They identify themselves variously within the digital spectrum, thus, your virtual or hybrid AGM must cater even to the lowest of the fluency levels.
Additionally, some digital platforms require complicated workflows — unsystematic verification, multiple application usage — to prioritize security. By employing such platforms, the inclusivity and engagement of the shareholders are sacrificed, leading to unsuccessful AGMs.
Linguistic Barriers
In developing an inclusive virtual or hybrid AGM, one major concern is language. Particularly in larger corporations where participants come from different parts of the globe, not all may be entirely fluent in the English language. Shareholders may need translation, especially with unfamiliar terms or culture-based terms that need interpretation for attendees from different cultures.
There may also be cases in virtual and hybrid AGMs that directors or the participants have speaking difficulties, or visual or hearing impairments. It is important to provide a means for them to acquire information from the meeting.
Unequal Opportunities for Shareholders
One cannot talk about inclusivity without considering equity. Now that organizations have shifted to electronic AGMs — virtual and hybrid — directors may think that they can get away with opposing investors or shareholder activists. In annual general meetings, all shareholders must have equal access to the presentation, voting rights, and interaction with the boards.
Embodying inclusivity means providing equal opportunities to shareholders. Boards must entertain questions from all, whether or not large investors, participating in-person or online. By doing this, the company will gain increased support from stakeholders, eventually leading to financial growth.
Inclusive Virtual and Hybrid AGMs with an AGM Platform
A successful AGM is determined by the satisfaction of shareholders throughout the meeting. Empower inclusivity in virtual and hybrid annual general meetings with an end-to-end AGM platform for your organization. Read on for the AGM solution features for inclusive meetings.
Flexible and Intuitive Interface
Allowing for seamless participation upholds inclusive AGMs. A virtual AGM solution like ConveneAGM offers a simple and all-in-one interface for shareholders to engage during the meeting. Users can watch the webcast, cast votes on elections, and ask questions on just one screen — removing the need to shift from one application to another. It also provides easy navigation for the registration and submission of digital proxies. This is beneficial for shareholders and executives who are not as fluent in digital tools.
Likewise, the platform supports real-time webcasts of the AGM in web browsers on multiple devices — computer, mobile, tablet. This allows participants from anywhere around the world to participate in the virtual AGM.
Simultaneous Interpretation and Captions
A diverse pool of shareholders comprises people from different cultures and languages with different speaking capacities. An inclusive meeting platform with language options can effectively communicate the message and discussions during virtual AGMs. ConveneAGM supports simultaneous audio translation for those who may opt to listen to the webcast in another language.
In addition, the platform also provides auto-generation of captions synchronous to the webcast, which is valuable for those participants with hearing impairments. Such features enable shareholders to understand and take part in the AGM regardless of language and capabilities.
In connection with language, inclusive annual general meetings must support the usage of proper pronouns of directors and participants. This will uphold courtesy and accountability during the meeting, which may lead to stronger relationships with shareholders.
Live Q&A
Establishing every activity in the AGM in real-time enhances engagement, equity, and inclusivity. Apart from the real-time webcast, the virtual AGM platform provides a live Q&A feature that allows shareholders to ask questions and join discussions during the meeting.
ConveneAGM offers two ways to conduct live Q&A to cater to the participants’ preferences. Shareholders may submit their textual questions, which can be answered by the moderator or be discussed during the AGM. Video-based questions, on the other hand, allow for two-way discussions between the board and the attendees.
Live Support
On top of the user-friendly platform, ConveneAGM also provides live support for participants who may encounter problems during the virtual or hybrid AGM. Users can opt to email, call or chat with a live agent to get immediate help.
Strive to be a corporation that empowers equality and inclusion in annual general meetings. An electronic AGM solution offers well-thought-of features for all meeting participants. Explore ConveneAGM and see how its features are made inclusive for both the boards and shareholders in participating in the remote annual general meeting. Schedule a demo with us today.