Last June 28, 2021, at the “Providing the Best AGM Experience” webinar administered by the Hong Kong Institute of Directors, Lee Wan Lik, Managing Director and Chairman of Azeus Systems Limited, shared why an electronic annual general meeting (AGM) is the best option for HK companies.

With the global pandemic situation, governance challenges and solutions have emerged, especially with annual general meetings. Delivering an ideal AGM experience requires the principal factors of enhancing shareholder engagement and trust. Lee discussed the best practices that Hong Kong companies can adhere to in adopting hybrid AGMs in the future.

How can hybrid AGMs address the commonplace problems with physical AGMs?

Adapting to change because of the unforeseen consequences of the COVID-19 pandemic left scepticism and misconceptions, especially in embracing online meetings. As social distancing measures and guidelines are implemented globally, businesses are forced to limit physical meetings and execute operations through remote work. Communication and collaboration become conveniently possible only through online meetings.

Even in physical meetings, security is a significant issue AGM administrators always have to watch for. With the introduction of virtual meetings, most people assume that activities done online are subject to cyber-attacks. However, many advanced digital solutions have surfaced, providing stronger defence. Powered by robust cloud infrastructure and network security, electronic AGM platforms can detect and prevent obtrusion. Lee remarked that there are measures to ensure the security and authentication of attendees, such as unique security codes and two-factor authentication. Moreover, with virtual AGMs, administrators can permit users with different levels of accessibility.

Apart from security issues, organisations are concerned with their ecological impact. Businesses leaving vast amounts of carbon footprint when holding AGMs can benefit from electronic AGMs. Lee mentioned directors could take part actively in eAGMs without spending time and travel costs to go to the physical location. In the hybrid format, shareholders can attend and participate virtually without leaving their homes. They would just need their devices to access the meeting platform. It is an excellent option for businesses that are subscribing to reducing carbon footprint in their operations.

Hybrid AGMs are digital solutions for companies and organisations to continue upholding good governance in general meetings without sacrificing functionality. Annual general meetings require time and resources, especially in distributing documents, administering voting, and tracking attendance. “This is why we introduced our digital AGM solution, ConveneAGM, to help our friends in the industry,” Lee affirmed while discussing why companies should adopt eAGMs. “[It] streamlines the entire board governance process […] It helps our clients practice good governance and work more efficiently,” he continued.

ConveneAGM is a solution that ensures collaboration throughout the whole annual general meeting, from pre-meeting to post-meeting. Fashioned for assemblies that require broadcast, such as AGMs, it streamlines the meeting process while allowing secured engagement of participants. It provides tools that simplify document sharing, online voting, approvals, and decision-making.

What are the concerns of companies adopting a hybrid AGM solution?

Transitioning into the “new normal” environment, organisations must adapt to the new format of general meetings. With the emerging digital model of remote working that most organisations are shifting to, electronic AGM solutions can benefit businesses by providing greater access and interaction, leading to increased relevance and efficiency.

The health threats of the COVID-19 pandemic have resulted in the stricter implementation of social distancing guidelines. With the number of participants in an AGM, there is a higher chance of direct physical contact in a face-to-face setup. Organisations cannot afford to conduct face-to-face meetings that may risk the health and safety of the shareholders.

Using ConveneAGM, shareholders have the option to attend physically or virtually. Participants must observe proper sanitation and social distancing measures in the physical location. Lee shared that “mics had to be sanitised after every use for the physical venue; intermingling had to be kept to a minimum with people monitoring that a safe social distance is being kept between shareholders.”

In addition, organisations could set contactless registration to minimise the hassle of manual registration and physical contact. Through this fuss-free processing of onsite registration, attendees can instantly mark their attendance through QR code scanning. Few registration desks are placed where they can search and verify the registrants within the system. The user QR code will pop up, which attendees need to scan to enter the AGM voting system.

Moreover, ConveneAGM enables voting through mobile phones. “We introduced a system called BYOD, Bring Your Own Device, so that voting is done contactless, with users using their own mobile phones after scanning the QR code,” Lee mentioned. This process removes the need for manual distribution and gathering of ballots. It also secures and consolidates votes from both onsite and virtual attendees — no more hassle and inefficiency in manually counting votes.

How does holding AGMs physically and virtually affect shareholder engagement?

During physical meetings, organisations are most familiar with the substantial amount of interaction and participation among shareholders. The challenge for eAGM platforms is to emulate the same level of shareholder engagement.

Events held in multiple languages are well-supported by ConveneAGM, with features and language settings present within the platform’s interface. Separate simultaneous interpretation audio channels and automated subtitles relayed real-time are placed that can help foreign shareholders follow the meeting proceedings. Upon understanding the meeting matters, they could express their opinions and questions. ConveneAGM supports live Q&A in textual and video formats “where users can ask questions face-to-face remotely like how they would do so in a physical meeting, enhancing the shareholder engagement experience,” as Lee explained.

Additionally, hybrid AGMs must empower the voices of the shareholders. ConveneAGM introduces live voting that allows real-time casting and consolidation of votes from all participants. Shareholders can submit their votes for each resolution anytime during the meeting. Once they have submitted their votes, they can see the results instantly. They also have the option to change their votes afterwards. Allowing participants to cast votes and know the outcome can heighten the shareholders’ engagement in the meeting.

How can organisations ensure shareholders attending physically and virtually get the same experience?

Holding a hybrid AGM requires a solution with minimal transmission latency to accommodate the concerns of all the attendees. Lee cited an anecdotal example from corporate secretaries who have experienced delays in meetings. “[In] cases where the Chair asks if there are questions and moves on after [getting seemingly no response], shareholders with questions thought that they were deliberately ignored, […] as the broadcast was transmitted much later.” ConveneAGM offers an unparalleled user experience as the platform uses WebRTC technology that ensures that the AGM is done in real-time.

Shareholders attending in the physical location and virtually can take part in matters requiring voting. With ConveneAGM’s live voting feature, shareholders can cast their votes through their own devices. Their votes are merged within the system and are instantly tallied and tabulated within the platform. Virtual and physical attendees can see the voting results at the same time. Additionally, using the same device, attendees can send questions across all the shareholders available for discussion. Every attendee can participate in the discussion, whether online or onsite, promoting accountability and increased engagement.

Ensuring that shareholders attending physically and virtually get the same experience in all aspects, live support must be readily available in both formats. ConveneAGM provides 24/7 global support, ensuring a seamless experience for all shareholders. While attendees can just raise their hands to seek help in physical meetings, virtual users can contact someone if they encounter issues with their device or the process. Virtual attendees could email, call, or chat with the live agent directly to diagnose the problem and provide solutions for them. Hybrid AGMs take into account the equal importance of technical support for the onsite and online participants.

How can Hong Kong companies hold eAGMs successfully?

With the New Companies Ordinance in Hong Kong, organisations may hold general meetings at more than one location using technology that allows shareholders to listen, speak, and vote. Lee assured that “in an ConveneAGM meeting, we safeguard these rights with the utmost care by offering the same rights and experiences of a shareholder attending in person as those attending remotely while allowing meetings to be held in a safe and constructive manner.”

The key to a successful hybrid AGM is to choose the right electronic AGM solution — there must be a seamless transference integrated between physical and virtual AGMs. Lee shared some of the considerations when selecting a suitable AGM solution provider:

  • Site recce. It is crucial to scout for locations or venues with a built-in projection, compatible sound systems, and wired internet. These types of equipment are important in ensuring that broadcasting can be done in real-time.
  • Seamless integration broadcast. The professional videographer should be able to integrate the broadcast with the eAGM platform seamlessly.
  • Onsite registration. Desks and a proper queue system must be arranged, allowing a smooth registration process. Contactless registration is recommended.
  • Managed Q&A. Physical and virtual attendees must have equal opportunities in asking questions.
  • Voting. Integrate proxy voting to ensure that offline and online voting runs seamlessly. Select a provider that can allow access without being restricted by the Chinese Great Firewall, if you have participants located in China.

Post-pandemic, it is no surprise if Hong Kong companies adopt the hybrid of physical and virtual AGMs. The best practice is to find solutions that will meet the specific needs of your general meetings. It is also important to ensure that organisations observe the shareholders’ rights and promote engagement. As Lee concluded, “[The] best AGM format is one where the finest interactions can be done in real-time without compromising any shareholder rights. This would then be a truly “live” AGM experience where the hybrid format embraces the best of both worlds.”

ConveneAGM provides a tailored approach for annual general meetings depending on the organisations’ constitutions and needs.

Are you looking for an AGM solution for your organisation? Find out how ConveneAGM can help with your annual general meeting.