Glass Lewis recently submitted a response to the Ministry of Finance, Singapore’s public consultation on Companies, Business Trusts and Other Bodies (Miscellaneous Amendments) Bill 2023, covering, among other topics, the use of virtual shareholder meetings.
We believe that the increased use of digital technology in general meetings is long overdue and there are substantial opportunities for emerging technologies to advance shareholder democracy, increase attendance and participation, and ultimately improve the shareholder experience.
There are two clear benefits for companies and their shareholders of meetings that allow for virtual attendance. Firstly, there are generally substantial cost-savings, which range from financial savings on venue hire, catering, and accommodation, to the reduced environmental impact of fewer journeys. Secondly, shareholders that would have in any case been unable to attend the meeting in person or be represented by a proxy are generally afforded increased abilities to participate in the meeting.
On a global basis, Glass Lewis unequivocally supports companies facilitating the virtual participation of shareholders in general meetings. Glass Lewis’ concerns regarding virtual meetings only apply in the case where a company has failed to establish and disclose clear procedures to protect shareholder participation rights.
In this case, we are broadly supportive of the rules and language that have been proposed. You can download our full response here:
Glass Lewis continually monitors regulatory developments across the globe so that our clients stay up to date on emerging best practices and local market expectations for key governance and ESG topics.
For more information on Glass Lewis’ approach to proxy research, contact:
GROW@glasslewis.com (Institutional Investors) | ENGAGE@glasslewis.com (Public Companies)
Decky Windarto also contributed to this post.