Keeping AGMs robust yet cordial in a disclosure-based regime
MOST of the focus on the recent changes to the Singapore Code of Corporate Governance has been on the key areas of director independence and diversity.
These are undoubtedly important; but another area which the Code emphasises also merits mention - shareholder engagement, in particular during annual general meetings.
As Principle 11 of the Code states: "The company treats all shareholders fairly and equitably in order to enable them to exercise shareholders' rights and have the opportunity to communicate their views on matters affecting the company. The company gives shareholders a balanced and understandable assessment of its performance, position and prospects.'' Further, Principle 12 adds that the company "communicates regularly with its shareholders and facilitates the participation of shareholders during general meetings and other dialogues to allow shareholders to communicate their views on various matters affecting the company''. It is worth highlighting that observation of all the Code's Principles is mandatory.
