The Department for Business has put forward a proposal that could allow companies to hold their annual general meetings (AGMs) entirely online. This proposal is part of a consultation aimed at reforming company reporting regulations.
While electronic participation in hybrid AGMs has been allowed since 2006, the ability to conduct an annual meeting entirely virtually has been a point of legal uncertainty. Current regulations stipulate that companies must inform shareholders of the date, time, and "place" of their meeting.
Luke Hildyard, head of UK policy at Share Action, argues that online-only AGMs could hinder corporate accountability, making it easier for boards to suppress difficult questions. Conversely, James Ashton, CEO of the Quoted Companies Alliance, suggests companies should have the flexibility to choose their AGM format, noting that not all in-person meetings are well-attended.