In the past, a lot of companies would give the option to hold shareholder meetings in person; however, recently, a lot of companies have shifted to online-only shareholder meetings due to Covid-19. Therefore, virtual shareholder meetings have become the norm. Even though a hybrid approach (with a physical event that is simulcast online) is usually welcomed by shareholders, virtual meetings continue to grow in popularity because they do not necessarily limit the number of people who can attend. At the same time, it is important for companies to make sure they get the most out of their virtual shareholder meetings. What are a few important tips to keep in mind?
Why Virtual Shareholder Meetings Are Successful
There are several benefits that come with holding a virtual annual meeting. Some of the best benefits include:
A virtual meeting can increase shareholder participation because they do not create a physical, geographic barrier.
Companies also have the opportunity to more easily reach out to many more shareholders than before.
They have multiple options available for handling shareholder questions.
Holding a virtual meeting can also be consistent with promoting new technology products that the company might be trying to market or employ.
These are just a few of the many benefits that come with holding a virtual AGM.
How To Make Virtual Shareholder Meetings Most Effective
There are several key steps that companies need to follow if they would like to ensure their virtual shareholder meetings are effective. Some of the most important points to keep in mind include:
Companies need to have strong security measures in place that protect confidential information related to the company and shareholders.
Companies also need to maximize the use of technology to make sure the meeting is accessible to everyone. This includes having a reliable tool that shareholders can use to ask questions.
Companies need to follow all relevant legal requirements regarding annual shareholder meetings. Businesses need to find ways to track any votes, using online voting, that might take place.
It is also prudent for businesses to solicit feedback from attendees after the event to see how they can improve virtual shareholder meetings moving forward.
Shareholder Engagement: Maximizing the Shareholder Relationship
One of the challenges that comes with holding a virtual shareholder meeting is shareholder engagement. Even though it might be easier for people to attend virtually, it might be harder to get everyone to participate.
Fortunately, there are ways companies can maximize engagement during a virtual meeting. When possible, videoconferencing technology is always preferred over audio-only meetings. Furthermore, companies must clearly advertise how they will handle shareholder questions and encourage them to ask questions. Businesses must have a way to handle online validation and voting while increasing consumer confidence in security measures.
Get the Most out of Virtual Shareholder Meetings
Virtual shareholder meetings have been on the rise during the past few years, and they are only going to be more popular moving forward. It is important for companies to comply with all relevant regulatory requirements while finding ways to engage with shareholders during virtual meetings by following these key steps. Get started with your virtual annual meeting today!