Time for AGMs to be more forward-looking

TRADITIONALLY, annual general meetings (AGMs) have focused on reporting where the board and company executives take shareholders on a lookback at the organisation’s performance.

AGM agenda mainstays include the review of audited financial statements, appointment of directors and auditors as well as discussion of dividends.

This is quite unlike the extraordinary general meetings (EGM), which are considered more forward-looking, given that these focus on significant, structural developments in the company that cannot wait until the next AGM.

Companies have conventionally refrained from voluntarily making forward-looking statements over concerns that these may be deemed speculative and create added risks of legal responsibilities and liabilities.

However, regulators like the Singapore Exchange and investor rights groups have recently started urging companies to provide forward guidance – as long as these are made in good faith, based on reasonable assumptions and credible methodologies, and are not misleading.

As profound shifts are reshaping markets, investors want to know more than just past performance. Where their investments are heading – and how confidently leaders can navigate uncertainty – matters. This heightens the need for strategic foresight and transparent future-oriented communication.

How can boards transform their AGMs from a compliance-driven historical review to a strategic narrative of what comes next?

Elevate storytelling

Investors wish to evaluate the company’s resilience, adaptability and ambition. A compelling long-term narrative delivered at the AGM can be powerful. It signals preparedness in a complex environment.

When boards articulate their view of the future and how the company is positioned to capture value, they demonstrate awareness of emerging risks and readiness to seize new opportunities.

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Presenting a longer-term plan also demonstrates strategic, future-oriented governance. The 2025 EY Board of the Future study shows that many boards are tied down by regulatory oversight, leaving little time for strategic foresight.

Providing forward visibility counters this imbalance and reinforces agile stewardship. Transparent communication about strategy, resilience and forward positioning reassures stakeholders that the company can withstand future shocks and sustain long‑term performance, reinforcing investor confidence.

While every company’s forward‑looking story is unique, there are three areas that companies should focus on as they build the core of a compelling future‑focused narrative.

• Managing disruptions

The conflict in the Middle East and the ensuing energy crisis have unsettled the global economy. With disruption accelerating across every dimension, investors want to know how the organisation is navigating these shifts.

Boards could use the AGM to communicate how their scenario planning and “no‑regret moves” are shaping a portfolio prepared for multiple plausible futures, alongside plans for reshaping portfolios around growth opportunities aligned to disruptive trends.

They could also articulate how the company is strengthening geopolitical resilience by, for example, adjusting market footprints, diversifying supply chains, and developing risk‑adjusted investment strategies.

Boards could also explain how cost structures and operating models are being redesigned to enhance productivity and long‑term resilience, helping investors understand how today’s strategic choices position the firm for tomorrow’s success.

Crucially, boards should share how these choices prepare the company for future risks and growth – not just recounting how disruptions were overcome in the past.

• Leveraging AI

Artificial intelligence (AI) has become a defining capability for companies.

Investors are keen to hear how AI is driving productivity, innovation and enterprise‑wide transformation; where it is deployed to automate routine work, augment teams and elevate customer experience; how human-machine collaboration is reshaping the company’s future workforce strategy; and how AI governance is strengthened to ensure that its use is responsible, secure and ethical.

Transparent communication on AI strategy positions the company as forward-thinking and innovation-driven.

• Advancing sustainability

Companies preparing their sustainability report for financial year 2025 will need to include disclosures of Scope 1 and 2 emissions. However, beyond reporting, there is scope for companies to articulate their climate ambitions at the AGM.

This could include the company’s long‑term climate commitments, key investments in sustainable innovation, and more importantly, how the firm’s sustainability journey adds to the value creation story.

By highlighting how sustainability accelerates performance and long‑term growth, boards present a narrative that extends well beyond historical metrics.

A strategic opportunity beyond compliance

Capital market stakeholders have called for companies to better communicate their growth plans with investors and market players. The AGM is ideal for this.

More than a legal milestone, an AGM should be a strategic platform for articulating the company’s long-term growth plans. Boards that use this platform to build trust and confidence, demonstrate resilience, and clearly signal where the company is heading will distinguish themselves.

The writer is Singapore head of assurance at Ernst & Young LLP

The views presented in this article belong to the author and do not necessarily reflect that of the global EY organisation or its member firms