The Securities and Exchange Commission of Pakistan (SECP), the apex regulator, has advised all the listed companies to ensure virtual participation of members / shareholders in the Annual General Meeting (AGM) through electronic means such as video-link, webinar, or other electronic as a regular feature with immediate effect. The primary objectives of these instructions are to ensure protection of minority shareholder’s interest, as well as safeguarding their wellbeing. The Board of the company has been advised to ensure availability of this facility.
Amid the COVID-19 pandemic, the SECP had allowed companies to arrange virtual participation to ensure maximum participation of shareholders at AGMs, to avoid large gatherings and physical contacts. The SECP observed an increased participation of members in the AGMs due to the ease of participation in meetings, which is a positive development. Further, the companies were also advised to provide email, WhatsApp number, mobile number or any other electronic mean through which shareholders can provide comments/suggestions for the proposed agenda items of the AGM. The SECP had advised companies to disseminate the details to the shareholders through its website, Pakistan Stock Exchange and addendum / notice in newspapers along with complete information necessary to enable them to access the facility.
Moreover, the company secretary and chairman were made responsible that the suggestions of the shareholders are mandatorily discussed in the meeting and made part of the minutes of the meeting. The SECP has also encouraged companies to ensure maximum participation of shareholders via electronic means and by requesting members to consolidate their attendance through proxies.
Considering its encouraging response, the SECP has made electronic participation of the shareholders now a permanent feature, in addition to the existing requirement of holding AGMs physically, at specified venues. The SECP has further clarified that the permission to hold general meetings through video link, webinar, zooming, etc., is in addition to requirement of holding physical meeting.
