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:
Hybrid AGMs make it easier for shareholders, regardless of their geographic location, to participate in the meeting. This is particularly beneficial for:
Virtual participation tools can lead to higher levels of engagement through:
For both the company and shareholders, hybrid AGMs can reduce costs significantly:
Hybrid AGMs contribute to sustainability efforts:
In unpredictable times, such as during a pandemic, hybrid AGMs provide the flexibility to adapt:
Hybrid AGMs can enhance transparency and trust through:
Adopting a hybrid AGM model demonstrates a company’s commitment to modernity and innovation:
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.
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.
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.