In recent years, the world has witnessed a rapid progression in digitalization, and this trend has only intensified during and after the pandemic. As a result, companies worldwide have turned to video meetings as their preferred method for conducting general meetings. What started as a necessity to comply with the legislation has now evolved into a full-fledged embrace of virtual and hybrid meetings by companies and shareholders alike.
While in-person events are making a strong comeback, an increasing number of organizations are still leaning toward virtual and hybrid AGMs due to their benefits — improved efficiency, reduced costs, and enhanced engagement. Notably, in Singapore, regulators such as the Society of Remisciers and the Securities Investors Associations actively encourage companies to conduct hybrid AGMs, citing the greater flexibility it provides for both companies and shareholders.
Conducting AGMs virtually requires a well-equipped platform to cover the end-to-end process of general meetings. Find out here how you can choose the right virtual meeting platform for your organization.
What are the benefits of virtual and hybrid AGMs?
Traditionally, companies have relied on in-person annual general meetings where all attendees gather in a physical location for manual voting and Q&A sessions. However, the advent of modern tools and methodologies has introduced online AGM methods – virtual and hybrid – providing companies with more options for conducting their shareholder meetings.
1. Greater Flexibility and Accessibility
Virtual and hybrid meetings offer convenient options for shareholders to participate from the comfort of their homes, eliminating the need for travel and accommodation expenses. In fact, the popularity of fully virtual shareholder meetings has been on the rise, with 28% of global companies holding virtual AGMs in 2022.
Additionally, online AGMs provide better accessibility by offering flexible options for remote attendees and at the same time, catering to attendees with disabilities through inclusive tools such as closed captioning and assistive capabilities.
2. Increased Attendance and Better Shareholder Engagement
Traditional in-person meetings often suffer from lower attendance rates due to travel and scheduling challenges. Fully virtual and hybrid meetings overcome this hurdle by allowing remote participation, thereby increasing the number of shareholders who can contribute to the quorum.
While in-person annual general meetings offer organic communication and participation among shareholders, virtual and hybrid shareholder meetings can also emulate such interactions. By employing the right virtual AGM platform, you can facilitate better communication with interactive and live features like real-time Q&A sessions and electronic voting tools. These allow more people to participate as online AGMs can also accommodate a larger number of attendees from various locations and time zones.
3. Enhanced Security
Virtual and hybrid AGMs benefit from advanced security measures offered by specialized AGM software, including password protection, multi-factor authentication, and secure logins. These features safeguard the integrity of meetings, protect sensitive information, and ensure the security of shareholders’ data. Additionally, the use of online meeting software enhances transparency and accountability by automatically recording the meeting and generating detailed reports from the discussions and voting results.
4. Increased Sustainability
As organizations strive to create a positive sustainability impact, virtual and hybrid AGMs play a role in reducing their carbon footprint. By eliminating travel-related emissions, these meetings contribute to a greener environment. Moreover, the shift to digital platforms reduces the need for paper-based voting, leading to less waste while maintaining complete transparency.
Embracing the future of shareholder meetings through digitalization not only improves efficiency but also demonstrates a commitment to meeting the needs of shareholders and the world we live in.
What is the goal of virtual shareholder meetings?
Initially viewed as a band-aid solution to the disruption caused by the halt in physical meetings, virtual shareholder meetings have now gained widespread acceptance among companies worldwide. As organizations increasingly embrace this modern approach, they are discovering the array of benefits it offers.
The primary goal of virtual AGMs is to comply with legislation surrounding shareholders, investors, and board meetings, especially in the face of unforeseen events like the COVID-19 pandemic. By transitioning to fully virtual meetings, companies enable shareholders to participate regardless of their location, ensuring accessibility for all stakeholders. Additionally, the shift to virtual meetings significantly reduces venue and travel expenses, making it a cost-effective option. These advantages have positioned virtual meetings as a viable means to maintain AGM continuity during crises.
Beyond its crisis management role, another key objective of virtual AGMs is to leverage technology to enhance shareholder engagement and transparency. Modern AGM software solutions now provide interactive tools like electronic voting, facilitating real-time results, and improved transparency in decision-making. Moreover, the live Q&A feature fosters effective communication between the board and shareholders, enabling meaningful interactions even in a virtual setting.
Requirements Before Holding a Virtual AGM
To fully harness the advantages of virtual or hybrid annual general meetings, thorough preparation is key. Here are the essential requirements you should address before hosting your AGM:
- Internal and External Regulatory Compliance — Ensure that your chosen virtual meeting method aligns with your company’s governing documents, such as bylaws and articles of incorporation. Additionally, stay updated on any changes in statutory guidelines surrounding AGMs to ensure full compliance.
- AGM Notice — Circulate a well-drafted AGM written notice to all stakeholders at least 14 days before the scheduled meeting date. The notice should include all relevant meeting details, such as the precise time, virtual venue, procedures for appointing proxies, proposed resolutions, and annual reports.
- Virtual Meeting Platform — Selecting the appropriate virtual meeting platform is paramount to the success of your AGM. This platform will serve as the central hub for all meeting activities, including the proxy process, attendee verification, real-time video broadcasting, digital voting, and two-way communication. Be sure to choose a reliable and secure platform that can make your annual general meetings effective, seamless, and free of any complications.
Access our complete checklist of what you need to prepare in conducting virtual annual general meetings.
How to Choose the Right Virtual Meeting Platform for AGM
Selecting the ideal virtual and online AGM platform for your organization can be a daunting task, given the plethora of solutions available. To assist you in making an informed decision, here are essential points to consider when evaluating electronic AGM solutions:
1. Cost
The pricing of an online AGM platform typically depends on the number of features and meeting capacity it offers. Before exploring vendors, analyze your specific requirements to avoid paying for unnecessary features, leading to excess costs. Look for providers offering individually tailored packages that align precisely with your organization’s needs. Tailored solutions help avoid a situation where you pay for features that later won’t be used, resulting in excess costs.
2. Features
Ensure that the AGM platform you choose effectively manages debates and discussions through a comprehensive set of features. Crucial features to look for include:
- Real-time Webcast: This feature enables smooth and no-delay broadcasting of the meeting for remote attendees.
- Voting: This facilitates decision-making and compliant record-keeping of voting results. Check if the platform offers live electronic voting.
- Q&A: An intuitive Q&A feature facilitates shareholder engagement. The question platform—where the participants have adequate time to formulate questions and review the answers—should be available before, during, and after the meeting. In addition, solutions like ConveneAGM support two-way interactive video to facilitate live Q&A sessions better.
- User List: An interactive user list makes it easier to track attendance for record-keeping.
- Reporting and Data Exports: Compiling polls and minutes of proceedings helps keep records available for internal and external audits.
- Digital Administration of Proxies: The management of proxy forms and voting rights improves administrative tasks and delivers a seamless meeting experience.
- Meeting Roles: Easy assignment of roles facilitates delegation of in-meeting responsibilities.
3. Accessibility and Meeting Capacity
Choose an online AGM solution that is easily accessible across multiple devices to further boost attendee participation and engagement. For example, web-based solutions can be accessed through mobile devices without compromising functionality present in the desktop solution. Mobile versions of the AGM solution should be intuitive and easy to use to allow shareholders of all levels of technical literacy to participate.
Depending on the number of shareholders, your solution of choice needs to accommodate them all. Verify that the chosen platform has the necessary capacity to host all members, regardless of the actual attendance.
4. Security and Support
Security is of paramount importance for any virtual AGM platform. Ensure the chosen solution employs robust security measures, including two-factor authentication, secure cloud data storage, and intrusion prevention tools. Regular third-party testing should be conducted to screen for vulnerabilities and maintain the platform’s security.
Ensure that your virtual AGM platform has external tech support that is readily available before and during the meeting to promptly address any technical issues that may arise. Easily accessible tech support reduces the risk of disruptions and time loss.
ConveneAGM offers 24/7 global AGM support, including live support on the day of the AGM through live chat, emails, or calls.
5. Client Testimonials
One of the best indicators in choosing an online AGM platform is the testimonials of other companies with the technology. Learn from their experiences and gauge the platform’s potential success for your organization. Understand the specific details that made their online AGM successful and how the software catered to their unique use cases.
By thoroughly assessing these considerations, you can make a well-informed decision. A successful AGM experience largely depends on selecting the right tool that caters to your specific requirements.
The Best Virtual AGM Software for Increased Participation
Incorporating online AGM software has emerged as a necessity for many organizations, even among those initially hesitant to embrace digitalization. The transition to virtual meetings has proven transformative, with some companies witnessing a remarkable double or even triple increase in AGM participation. A secure, convenient, and reliable AGM platform plays a pivotal role in ensuring the success of these meetings.
Before making the decision to implement your virtual AGM platform, careful consideration of its cost, features, ease of use, and support options is crucial. By selecting a tool that aligns precisely with your company’s needs, you can foster seamless and engaging virtual shareholder meetings.
ConveneAGM stands out as the ultimate choice for the best virtual AGM experience. With our fast, secure, and user-friendly platform, we offer companies a comprehensive solution to meet their virtual meeting needs effectively. To discover more about how it can empower your organization, schedule a demo of ConveneAGM today!