The Case for Hybrid AGMs: Enhancing Shareholder Engagement and Accessibility

As corporate governance evolves, Australian boards need to find new ways to boost shareholder engagement. 

Transitioning from traditional in-person AGMs to a hybrid model, which combines physical and virtual attendance, offers a multitude of benefits. Here’s why this shift is advantageous from a shareholder and board perspective: 

1. Increased Accessibility and Inclusivity

Hybrid AGMs make it easier for shareholders, regardless of their geographic location, to participate in the meeting. This is particularly beneficial for:

• Regional and International Shareholders: Shareholders who live in remote areas or abroad can attend without the need for travel, reducing both time and cost burdens.
• Shareholders with Mobility Issues: Those who may have physical disabilities or health concerns can engage fully from the comfort of their own homes.
• Busy Professionals and Shareholders with Family Commitments: Shareholders with demanding schedules or family responsibilities can attend virtually without disrupting their day-to-day activities.

2. Enhanced Participation and Engagement

Virtual participation tools can lead to higher levels of engagement through: 

• Real-Time Interaction: Shareholders can ask questions and participate in discussions via chat functions, polls, and Q&A sessions, fostering a more interactive environment.
• On-Demand Access: Meetings can be recorded and made available post-event, allowing shareholders to review discussions and presentations at their convenience if they are unable to attend live.

3. Cost Efficiency

For both the company and shareholders, hybrid AGMs can reduce costs significantly: 

• Travel and Accommodation Savings: Shareholders save on travel and accommodation expenses, making attendance more financially feasible.
• Reduced Company Overheads: Companies can lower the costs associated with large-scale physical venues, catering, and printed materials.

4. Environmental and ESG Benefits

Hybrid AGMs contribute to sustainability efforts: 

• Reduced Carbon Footprint: Lower travel requirements lead to decreased carbon emissions, aligning with broader environmental, social, and governance (ESG) goals.
• Less Waste: Digital materials reduce the need for printed reports and documents, promoting a more eco-friendly approach.

5. Flexibility and Resilience

In unpredictable times, such as during a pandemic, hybrid AGMs provide the flexibility to adapt: 

• Business Continuity: The ability to switch seamlessly between physical and virtual formats ensures that AGMs can proceed without disruption, regardless of external circumstances.
• Scalability: Hybrid models can easily accommodate varying numbers of participants, ensuring that all interested shareholders can participate.

6. Enhanced Transparency and Trust

Hybrid AGMs can enhance transparency and trust through: 

• Comprehensive Reporting: Real-time updates and digital archiving ensure that all shareholder communications are clear and accessible.
• Increased Accountability: The ability for a broader shareholder base to attend and participate can lead to more rigorous questioning and scrutiny of company practices and performance.

7. Modernisation and Competitive Advantage

Adopting a hybrid AGM model demonstrates a company’s commitment to modernity and innovation: 

• Reputation: Companies that leverage technology to enhance shareholder engagement are seen as forward-thinking and responsive to stakeholder needs.
• Attractiveness to Investors: Enhanced engagement and accessibility can make the company more attractive to potential investors who value transparency and inclusivity.

What is a Hybrid AGM specifically? 

A hybrid meeting combines virtual and traditional face-to-face meetings, offering increased flexibility and higher stakeholder attendance.

We live in a world that is increasingly a combination of the physical and the virtual – we can watch a film at the cinema or download it from Netflix, pick up a newspaper or read it online. This hybrid world is becoming more common in the world of annual meetings. 

At a traditional members meeting, members can meet the board, hear their view of the year just past and hold them to account in person. 

Hybrid AGMs combine these two approaches, allowing people to attend the meeting in person, as well as having members attending remotely, online. This allows the greatest possible number of people to take part, increasing attendance and engagement while cutting the cost, time and inconvenience of attending meetings. 

Hybrid meetings open your organisation to all generations, without alienating older generations who prefer to turn up in person. 

But while a hybrid annual meeting opens up new possibilities, the basics of arranging the meeting remain the same. It’s important that a remote attendee can participate in the meeting fully.

What needs to be done to move to a Hybrid AGM for your 2024 AGM? 

Good corporate governance involves updating your company constitution to allow the ability to hold virtual shareholder meetings to ensure your AGM never gets interrupted by external events. If your current constitution however does not have this directly outlined under the amended Corporation’s Act 2001 (Cth) from 01 April 2022 companies are allowed to hold general meetings at one or more physical venues and using virtual meeting technology (hybrid meetings) without this clearly stipulated. 

Summary

By transitioning to a hybrid AGM model, companies can significantly enhance shareholder satisfaction and engagement, while also reaping the benefits of cost savings, sustainability, and resilience. This modern approach not only aligns with current technological advancements but also ensures that every shareholder has a voice, regardless of their circumstances. The Australian Securities and Investments Commission (ASIC) encourages companies to use technology while keeping AGM processes honest. As Company Secretaries, embracing this change is a step towards a more inclusive, efficient, and dynamic future for corporate governance. 

Automic are leaders in Australia in AGM meeting services supporting hybrid and in-person meetings. Automic Group offers purpose-built technology solutions that are specifically engineered to meet the requirements of the market, clients and on-going legislative changes. Our meeting solution is secure, provides real-time live polling and is compliant with legislative requirements. Using best in class technology, we can assist with your upcoming AGM or EGM. 

For more information, read about our meeting solutions here, or contact leith.morrison@automicgroup.com.au for a discussion.