How to hold a successful annual general meeting

Companies should go beyond discussing financial numbers to include corporate strategy and long-term value creation, and listen to shareholders.

Published Mon, Mar 23, 2020 · 09:50 PM

THE annual general meeting (AGM) season is upon us again. The AGM is a golden opportunity for companies to engage shareholders face to face, address their concerns and questions, and experience their sentiments in an authentic manner.

Even with the current evolving Covid-19 situation, where social distancing is advised and there are grave reservations over holding large gatherings, the opportunity to engage with stakeholders is not lost with technology enabling "virtual" AGMs to be held. It is still relevant for boards and management to consider what are their priorities and ultimately, what they would like to achieve at the forthcoming AGM.

The annual report is widely used to communicate with shareholders the company's financial performance. Often it contains glossy charts illustrating the organisation's accomplishments, trending figures and supplementing narratives, as well as financial statements with comprehensive disclosures and notes to accounts, prepared in compliance with the accounting standards. The auditors would have given their stamp of approval with an unqualified opinion or where the opinion is …