Ever since the COVID-19 pandemic hit, many people were obliged to move into the digital space. From face-to-face meetings, organizations have transitioned to virtual meetings, including Annual General Meetings (AGMs). In April 2020, regulatory authorities quickly passed legislation allowing companies to hold their virtual or hybrid AGM in place of the in-person AGM in Singapore.
Understanding Virtual and Hybrid AGMs
Annual General Meeting (AGM) is a yearly gathering of shareholders where the company’s performance in the previous year and current issues at hand are discussed. Although virtual events are becoming the new norm these days, what are the benefits of having virtual and/or hybrid AGMs? Let us take a further look into these types of meetings.
Virtual AGM
Virtual AGM is the equivalent of an in-person shareholder meeting. The only difference is the format since virtual annual general meetings takes place online, but the overall structure of AGM remains the same. Therefore, agendas such as discussing the company’s previous minutes and financial performance and tasks like voting to appoint a new set of board directors are still being followed. This new format definitely comes with key advantages, including cost-effectiveness, increased attendance, and enhanced collaboration.
With AGMs happening virtually, shareholders do not need to worry about travel and accommodation expenses like before. Shareholders and their secretaries can now skip the tedious process of booking flights and hotels or traveling to and from the venue. This translates to increased efficiency since they can now focus on the actual tasks they need to accomplish. They can save a huge amount of money, time, and effort with virtual AGM in place while attending AGMs in the comfort of their own homes.
Virtual AGM platforms like ConveneAGM made it possible for shareholders to join the meeting with a single click of a button. This provides more opportunities for shareholders to participate in the AGM personally. It also encourages more people to be directly involved in important discussions and decision-making. Hence, we can expect a rise in virtual AGMs’ attendance compared to AGMs solely done in closed-door locations.
Moreover, virtual AGM platforms can enhance collaboration among participants through various tools and functionalities that aid in managing the overall AGM. One example is the ConveneAGM’s voting module which can display real-time results as soon as the shareholders cast their votes. Those who cannot make it to the AGM can use a proxy voting system.
Hybrid AGM
Hybrid AGMs have also started to gain attention since they promote inclusivity and accessibility to a wide range of demographics. Multiple organizations in Singapore have started to conduct their AGMs through a hybrid format. As technology continuously improves, audience expectations and demands will vary. Similar to any hybrid event, hybrid AGM allows companies to maximize the benefits of having both options. It offers flexibility to shareholders who can opt to join the meeting online or attend in person.
For participants located far from the venue booked, they can join the AGM virtually. This will save them a lot of time and money, unlike in traditional AGMs where participants are physically obligated to attend the meeting. Meanwhile, those who are not as tech-savvy as others can personally appear at the venue. In this way, they will not have trouble navigating through a platform they are not very familiar with or not confident using. Depending on their schedule or simply preference, participants can freely choose which option will be most convenient for them.
Hybrid AGMs fill the lack of interaction and engagement by letting people attend in-person, but at the same time, offer accessibility by providing an online option. This boosts the transparency rate in meetings, like during voting sessions when results are recorded in real-time.
Hybrid AGMs give online attendees a chance to participate in polls. Meanwhile, attendees at the venue can prepare their feedback while waiting for everyone else to cast their votes.
Future of AGMs
The COVID-19 pandemic drove the world into the digital sphere. The abrupt transition came as a surprise, but it essentially pushed forward online work engagements in many countries across the globe. Since more people are adapting to this technological revolution, more companies will eventually embrace virtual or remote meetings even after the crisis.
Singapore is one of the countries that expressed their support to virtual shareholder meetings post-COVID times. The Monetary Authority of Singapore’s deputy managing director for financial supervision stated that they are open to the idea of conducting virtual and hybrid meetings as long-term options. Although these new arrangements are promising to see in the long run, they cannot fully eradicate physical AGMs in Singapore. Virtual and hybrid AGMs broadened people’s choices to cater to AGM participants’ diverse needs and/or preferences. Thus, hybrid AGMs can be viewed as the future of AGMs rather than eliminating the old way of conducting an annual general meeting. As long as these formats do not compromise the security and effectiveness of holding traditional AGMs, they can be considered viable alternatives to physical AGMs.
Impact of Alternative AGM Options
In September 2020, the Singapore Parliament urgently passed the bill for alternative annual general meeting arrangements. Given the ongoing COVID-19 pandemic, companies are permitted to conduct virtual AGMs until June further this year. Edwin Tong, Second Minister for Law, said that the setup could minimize the risk of COVID-19 transmission in the country even when physical meetings will be permitted. As technology shifts to provide alternative AGM options, we can also expect a shift in its impact to board governance.
Keeping Up with Trends
The COVID-19 pandemic compelled people to socially distance themselves from others to prevent the spread of this deadly disease. This, in turn, disrupted many of people’s daily activities, especially in the workplace. The move to the digital sphere resulted in the sudden rise in demands for AGM platforms. As influenced by current workplace struggles, virtual or hybrid AGM options help improve board governance. The digital transformation provided people with more opportunities on how companies will manage their regular meetings. New technologies further enhance communication and engagement among shareholders that are significant factors in producing sound judgment and better decisions.
Accepting New Changes
People must be open to new changes, whether at work or home, during this time of uncertainty. Embracing new normal practices like conducting AGMs virtually contributes greatly to maintaining the continuous order and flow of activities in various organizations. These virtual platforms are designed to provide people with the same or even better experience at work. Although many companies adopted virtual meetings, there are only a handful of these companies that used live Q&A in their AGMs. This is mainly due to the misconception that new features will come at a high cost.
With ConveneAGM, companies do not need to worry about additional costs for new features. Jia Rern Yap, Business Development and Partnerships Manager, assured that Azeus Systems would charge the same rate for a meeting with live features for a standard meeting solution. With this in mind, companies can engage in discussions without eliminating other aspects of physical meetings, such as administering live Q&A during virtual meetings.
Utilizing Resources
Virtual AGM and hybrid AGM prove to be as efficient as traditional closed-door AGM, with virtual or hybrid AGMs regarded as the future of AGM. Since companies can adapt to this new setup post-pandemic, they can choose to invest in a platform where they can get the most out of their money. There are numerous platforms available in the market today. However, if you know the needs of your company, you can narrow down your options. If you still cannot decide which one to get, the section below can guide you when choosing a virtual AGM platform.
Choosing the Right AGM Solution
With various technological tools popping here and there, you need to prioritize the ones your organization deems essential in the workspace. You might be overwhelmed when you do not have any background in AGM solutions. Here are some features you should consider when availing of an AGM solution:
Stringent Security
The cybersecurity threat is the biggest enemy in any digital space. Security is a crucial requirement that you should take note of to prevent unauthorized access to your meetings. Unauthorized access could put your company at high risk of unauthorized distribution of confidential data. To combat cybersecurity issues, you should choose an AGM platform that has robust security measures. The right platform can ensure your company that only authorized users will have access to the solution. Consider platforms that offer end-to-end security like two-factor authentication to provide an extra layer of security verification, secure cloud infrastructure to store confidential records, and network security to detect and prevent intrusions.
User-Friendly Interface
For a smooth user experience, an AGM platform should be designed to navigate the solution easily. It would be ideal if users can accomplish tasks effortlessly like their experience in a traditional AGM setup. Moreover, the design should not be too complicated so first-time users will not have a hard time navigating through the platform and won’t encounter any issues while using the system. This can also encourage shareholders who are accustomed to physical AGMs to utilize the new technology available.
Transparency and Accountability
Transparency and accountability are key factors in establishing good corporate governance. These are crucial components in building strong relations among shareholders to manage the company successfully. If organizations are transparent with their actions, it will be easy to identify who will be held accountable if an issue arises. Therefore, AGM platforms should have the ability to track data in real-time, so validating information will not be that troublesome. This also promotes effective board management since it keeps a record or a data log that can be pulled up as needed.
As technology continuously evolves to adapt to the growing demands of society, it provides more ways to host virtual meetings efficiently. Yap also mentioned to The Business Times that “We in Azeus definitely see virtual and/or hybrid AGMs as the way of the future, even after the pandemic, as it provides the flexibility for companies to have a fuller engagement with their shareholders.” Virtual and hybrid AGM solutions are not just band-aid solutions brought by the pandemic, but rather these are important aspects in fully embracing digital transformation. ConveneAGM can offer your company a secure platform with powerful features to simplify the meeting process at an affordable value.
If you want to learn more about our virtual or hybrid AGM solution, contact us and request a demo today.