Annual General Meetings could fall victim to digital disruption
The Australian Institute of Company Directors says the concept of an annual general meeting is dysfunctional and unnecessary in the modern world.
A survey of 5,000 company directors found that a third believe that the idea of an annual general meeting is outdated and needs to change with the times.
“The old company AGM is no longer meets its purposes. We’re getting fewer and fewer people attending, and many of the decisions are made well and truly before the AGM is opened,” AICD chief executive John Brogden said during the ABC’s AM program.
Mr Brodgen said that it was time to explore new ways to allow shareholders to have their say – utilising technology to conduct votes and deliver news and speeches to shareholders.
He explained that the proposed changes were not about silencing shareholder criticism and dissent.
“We want to make it easier to people to attend and engage. So if you’re a critic it’s also certain that changes to AGMs will make it easier for people to be engaged rather than harder,” he said.