As the COVID-19 pandemic swept the world and shifted the way many businesses work, physical annual general meetings (AGMs) became difficult to execute. Businesses had to adopt technology to maintain productivity even in flexible work arrangements. Yet, Hong Kong is no stranger to this.
Hong Kong has always been proactive in adopting digital technology. As early as 2017, the Hong Kong government has published a Smart City Blueprint to help develop technological infrastructure to build a smart ecosystem and reap the benefits of innovation and technology in everyday life.
55% of business decision-makers in Hong Kong believe that adopting and innovating in these changing times is the way to make a recovery from the pandemic’s effects on businesses and as a way to build resilience to an ever-changing market. Shifting to virtual or hybrid AGMs is the next step in digitalization for Hong Kong businesses.
Shifting to Virtual Meetings
Due to the risks of the COVID-19 virus, companies have been encouraged to limit physical gatherings to promote safety measures and social distancing as part of the Prevention and Control of Disease Regulation.
The shift from in-person arrangements in work and meetings has opened the door for virtual tools in place ― one of them being virtual AGMs. Virtual AGMs act for physical AGMs but are held in a virtual format and give shareholders the same experience of listening and voting on important decisions.
The Companies Ordinance of Hong Kong created a provision that allows companies to use technology for their shareholder meetings to allow attendees “who are not together at the same place to listen, speak, and vote at the meeting.” The attendees must cast their vote in any method, such as a verbal response through a phone call or a show of hands through a video conference.
Amidst the limitation on physical gatherings by the regulation, AGMs are part of the exception. They are group gatherings that must be held within a timeframe in compliance with an ordinance. The regulation also mentions that if more than 20 persons attend the AGM, the companies must ensure safety measures to observe social distancing. This opens the option of having hybrid AGMs, or meetings held both virtually and at a physical location, with the shareholders having the option to attend either of their choices.
Read more about virtual/online and hybrid AGMs through our guide.
The Benefits of Virtual and Hybrid AGMs
Luckily, virtual AGM platforms such as ConveneAGM allow companies to hold both virtual and hybrid AGMs seamlessly and securely. Here is a closer look at some of the benefits companies can get by shifting to virtual or hybrid AGMs such as ConveneAGM.
Security
Because of the nature of topics discussed in AGMs, virtual AGM platforms are equipped with robust security features such as authentication measures to keep unwanted third parties from attending and accessing sensitive data. Moreover, participating shareholders receive a unique security code that helps authorize and delegate meeting roles to them. This security code also allows the shareholders to make actions throughout the meeting, such as viewing the materials, designating proxies, and asking questions before the meeting.
Accessibility
Going virtual with AGMs allows for greater accessibility to the participating shareholders when there would otherwise be geographical barriers hindering the participation of some attendees with traditional AGMs.
Increased Shareholder Engagement
Contrary to what people may think, a virtual format can further encourage engagement for shareholders. The presence of and access to anonymous questions than in physical AGMs can make it easier for shareholders to participate actively. Having an AGM provider with live voting and live Q&A features can further enhance the interaction and engagement of the attendees.
Transparency and Accountability
For those unable to personally attend the virtual AGMs, having the right proxy forms and proxy voting system allows for greater participation and accountability among participants. Platforms like ConveneAGM are built with audit trails and live poll results that promote transparency throughout the meeting. These data can then be easily exported into a detailed summary report for recording purposes.
Cost-Effective
Contrary to hosting an in-person AGM, virtual AGMs can save on expenses such as venue rentals, refreshments, or documentation. For attendees, it means saving as well on travel and accommodation costs.
Find Success with Virtual or Hybrid AGMs
Just as one would prepare a physical AGM, ample preparation is needed to ensure that the virtual or hybrid AGM is successful. Best practices for chairing a virtual AGM include the right meeting preparation, double-checking technology peripherals, and establishing the formal rules for conduct. Virtual and hybrid AGMs are expected to be a mainstay moving forward in the post-pandemic workspace, so it is important to be informed and prepared.
At the end of the day, it all goes back to the goal of a virtual shareholder meeting to offer a platform for attendee engagement to ensure that the engagement between shareholders is meaningful and that the virtual format is enabling it rather than hindering it.
As most companies turn to digital solutions, give your shareholders that platform to discuss important company issues and make crucial decisions. Transition to virtual or hybrid AGMs and power your organization forward.
Learn more about how you can have a secure and convenient virtual or hybrid AGM with ConveneAGM.