Time to do away with virtual-only AGMs

FROM a corporate governance viewpoint, it is disappointing to see that although almost all restrictions on group sizes have been lifted, most companies which have a Mar 31 year-end will not be hosting fully physical annual general meetings (AGMs) in July. Even more disappointing is that a few will still be holding electronic-only AGMs, instead of the hybrid format which is allowed.

This has to change. With the Covid crisis having stabilised, all sectors of the economy have been fully opened, normal overseas travel has resumed and with Singapore enjoying a high vaccination rate, contagion risk is now minimal. The authorities should therefore revert to physical meetings, or at the very least, do away with the virtual-only option.

Virtual meetings were introduced in April 2020 in response to the onset of the pandemic when the danger of virus contagion in large gatherings was clearly present. Legislation was passed to allow companies the choice of replacing the in-person AGM with one that was either fully virtual or a hybrid option, which allowed some shareholders to be physically present and the rest attending online.