Thanks to Covid-19 the world has had to change the way we do business – and fast. When it comes to running an AGM, this means potentially having to change the way in which your upcoming AGM takes place.
An AGM needs to occur within six months of the year-end in order for public companies and private companies that are traded to meet current regulations. But with the social distancing restrictions put in place by the government that limit larger gatherings, the traditional means by which most organisations would host these events are no longer possible.
Just last week Barclays made the announcement that it will no longer be hosting its AGM in Glasgow as planned. The event will now be taking place behind closed doors at the bank’s Canary Wharf headquarters on 7th May.
So what’s the answer?
It seems moving from conference room to couch is what some organisations are being forced to consider in order to remain compliant.
We noticed an article in The Times last week discussing this very thing, and it paints quite the picture… Hikma Pharmaceuticals has moved its AGM from a five-star grade II-listed hotel in London’s St James’s to a residential address in Surbiton, which is the home of their company secretary. And Hikma Pharmaceuticals isn’t the only organisation turning to technology to meet these specific needs. The London Stock Exchange is currently lobbying government to make the necessary amendments to the Companies Act that would legitimately enable businesses to run virtual AGMs during the Covid-19 outbreak.
Virtual AGMs aren’t uncommon over in the US but here in the UK, many institutional shareholder bodies have voiced concern that this style of meeting falls short of requirements from a wider governance perspective. But desperate times call for desperate measures and if the government do not issue an extension to the statutory deadlines, which they’ve yet to do, then alternative arrangements will need to be made.
Time to transcribe!
With the unprecedented change in circumstances, it’s more important than ever to keep an accurate record of what’s taken place during the meeting. AGMs are important and the details within them can be crucial to business operations. Having a useful account of the issues raised at the AGM and any outcomes that may need to be addressed as a result is invaluable – especially in these unusual circumstances we find ourselves in. Having an accurate transcript of the AGM produced in a timely manner is not only essential document for any Board, it’s also an incredibly useful tool to refer to the following year in preparation for the next AGM.
Don’t miss our helpful blog on how to plan ahead for running an AGM, including a checklist of important steps to ensure your meeting is fully compliant with all the necessary regulations.
If you’re still planning your AGM – in whatever form you’re able – please contact us alex@fionashipley.com to book in your transcription.