Singapore Open to Virtual Shareholder Meetings
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Currently, companies are allowed to conduct their general meetings via alternate non-physical means until June 2021.
The Monetary Authority of Singapore (MAS) and Singapore Exchange Regulation (SGX RegCo) are open to allowing hybrid or fully virtual shareholder meetings after social distancing measures are eased, post-Covid-19, if active participation can be ensured.
The regulatory bodies are currently closely monitoring the experiences of issuers and investors during virtual meetings, Ong Chong Tee, MAS deputy managing director, said on Monday.
What is important is that such new meeting formats should not compromise effective shareholder engagement, allow proper verification of attendees and voters, and facilitate accurate and secure voting processes, Ong said.
Covid-19 safe distancing measures and travel restrictions have limited the conduct of physical meetings. In April, MAS, ACRA and MinLaw worked with SGX RegCo to fast-track legislation to provide legal certainty to listed issuers so that they may implement safe distancing measures imposed by the Ministry of Health and hold virtual general meetings.
MAS also published a checklist of measures to ensure informed and effective participation, which include requirements for a live broadcast, proxy voting, allowing shareholders to ask questions and having them addressed ahead of the meeting.
Questions & Answers
Q.What is the current allowance for companies to conduct general meetings non-physically?
What is the current allowance for companies to conduct general meetings non-physically?
Companies are currently permitted to hold their general meetings using alternative non-physical methods. This allowance is in effect until June 2021, providing flexibility during the ongoing situation.
Q.Which organisations are open to permitting virtual or hybrid shareholder meetings in the future?
Which organisations are open to permitting virtual or hybrid shareholder meetings in the future?
The Monetary Authority of Singapore (MAS) and Singapore Exchange Regulation (SGX RegCo) are open to these new meeting formats. This is conditional on effective participation being maintained once social distancing measures are relaxed.
Q.What key aspects are the regulatory bodies focusing on for new meeting formats?
What key aspects are the regulatory bodies focusing on for new meeting formats?
The regulatory bodies emphasise that new formats must not compromise shareholder engagement. They also need to ensure proper verification of attendees and voters, alongside secure and accurate voting processes.
Q.What measures did MAS publish to ensure effective participation in virtual meetings?
What measures did MAS publish to ensure effective participation in virtual meetings?
MAS published a checklist including requirements for a live broadcast and proxy voting. It also specifies allowing shareholders to ask questions and having these addressed before the meeting commences.
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