{"id":2563,"date":"2019-10-07T06:10:28","date_gmt":"2019-10-07T06:10:28","guid":{"rendered":"https:\/\/candrgroup.co.ke\/?p=2563"},"modified":"2024-03-30T21:58:31","modified_gmt":"2024-03-30T21:58:31","slug":"the-missing-shareholder-an-analysis-of-the-lack-of-shareholder-representation-in-annual-general-meetings-agm","status":"publish","type":"post","link":"https:\/\/candrgroup.co.ke\/2019\/10\/07\/the-missing-shareholder-an-analysis-of-the-lack-of-shareholder-representation-in-annual-general-meetings-agm\/","title":{"rendered":"THE MISSING SHAREHOLDER:\u00a0 AN ANALYSIS OF THE LACK OF SHAREHOLDER REPRESENTATION IN ANNUAL GENERAL MEETINGS (AGM)"},"content":{"rendered":"\n
For listed companies, the Annual General Meeting (\u201cAGM\u201d) is a critical meeting. Apart from being a regulatory requirement for public listed companies, the AGM is the typical forum for companies to interact with their shareholders. Shareholders play a pivotal role in approving annual reports and even voting on crucial matters during the annual general meeting. For shareholders it is the forum for them to monitor and gauge the management of the company, to interact with the company\u2019s board of directors and also to voice opinions and vote on company strategic and financial affairs.<\/p>\n\n\n\n
Most companies therefore plan for their AGM with keen diligence, months in advance, with the hope for a smooth AGM with positive sentiments and contributions from shareholders and a smooth voting process\/approvals on voting matters.\u00a0 \u00a0However, it is important for companies to note that many shareholder sentiments and voting inclinations are developed ahead of the AGM.\u00a0 Therefore, waiting for an AGM to align shareholder sentiments with the company\u2019s message is not the most effective approach.\u00a0 It is important for public listed companies to find ways to expand their engagement touch-points with shareholders, which will ensure that by the time of the AGM, their message has been transparent and consistent in reaching their shareholders.\u00a0<\/p>\n\n\n\n
It is also important for listed companies to consider the shareholder representation at AGMs.\u00a0\u00a0\u00a0 If the AGM is the main company forum to gauge shareholder sentiments, the company runs the risk of a limited global perspective if there are gaps in shareholder representation at AGMs.<\/p>\n\n\n\n
At C&R Group we have done a study to analyze AGM attendance in order to identify whether there is a \u201cmissing shareholder\u201d, or gap in shareholder representation at AGMs, and the potential investor relations for impact for listed companies. \u00a0<\/p>\n\n\n\n
We analyzed data across 5 years, from 2015 -2019, for AGM attendance against the register shareholder profiles, using a sample of 8 companies. The data below shows the average performance over the years:\u00a0 It is noted that AGM attendance has gone up over the years, but with one consistent feature \u2013 shareholders whose shareholdings range from 5,001 to 100,000 shares, have the lowest turnout in AGMs. \u00a0\u00a0The main representation at AGMs are the strategic investors, either in person but generally through proxy, and nominees account holders, generally represented by one proxy from the nominee company.
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