Virtual-only AGMs – voice added to the chorus of disapproval

The Investment Association has published a position statement on the use of virtual-only annual general meetings.

The IA's position is that members will not support amendments to articles of association that would allow virtual-only AGMs ie, meetings that take place in an entirely virtual space, with no physical element. IA Institutional Voting Service will red-top any company that allows virtual-only AGMs after amending its articles. This position broadly aligns with the position published by the ISS in its 2018 Proxy Voting Guidelines.

The IA highlights that a physical meeting provides an invaluable opportunity to raise concerns with the board in a public forum. In addition it also considers that proposals for virtual only meetings give the impression that boards want to filter shareholder questions.