In the March 2024 edition of IR leader, I wrote about the risks of virtual-only Annual General Meetings (AGMs) and the real disadvantages for investors. This is a follow-up piece reflecting on the growth of hybrid AGMs around the world and offering practical guidance for investor relations teams, in the hope that best practices will be adopted over time. The end result should be an engaging and productive use of time for both companies and investors.
Since COVID, AGMs have rapidly shifted from predominantly in-person events to hybrid formats, which now account for about 40 per cent of shareholder meetings worldwide. Jurisdictional practices vary, with the number being higher in Australia at about 60%, while hybrid AGMs are to be mandatory in Korea starting in 2027 for companies of a certain size. AGMs remain the key forum for shareholders to receive information, question the Board, and exercise core rights such as voting on directors and major policies.
AGM formats in Canada are primarily governed by corporate law, and recent changes have permitted virtual meetings following the pandemic experience. Given this development, the Canadian Securities Administrators (CSA) has offered guidance for Canadian issuers, which is a useful starting point. For investors, virtual-only AGMs have some drawbacks, while hybrid meetings, when done well, combine accessible virtual participation with the accountability and interaction of in-person meetings. However, inconsistent practices mean hybrid AGMs can either increase transparency and shareholder rights – or undermine them. Clear guidance sets expectations and promotes high-quality hybrid AGMs.
As companies prepare for the 2026 AGM season, it is important to recognize that investors are increasingly expecting the adoption of hybrid AGMs and the following of best practices. That means genuine opportunities for virtual attendees to ask questions and fully participate. As this practice grows, BCI felt it necessary to provide guidance to the market that lays out clear standards, and we are utilizing our global presence to advocate for them across markets.
We have already heard positive feedback from companies, regulators and investors in several markets. In fact, some companies are starting to implement these suggestions for upcoming AGMs. It really demonstrates early impact and momentum toward more open and accountable meetings.
When shareholders can participate directly in AGMs by asking questions and hearing answers in real time, it creates real accountability. Boards know they'll face direct questions from shareholders.
Not all shareholders are provided access to top management and the Board in their direct engagement work, but AGMs are different. When investors raise concerns about things like corporate governance or climate risks, they get heard directly by CEOs and Board directors who are ultimately accountable to shareholders. That kind of transparency and accountability encourages better management decisions and Board oversight over time, ultimately protecting and growing the value of our investments.
Key Reasons Investors Support Hybrid AGMs
Hybrid AGMs can drive business and governance benefits. Hybrid AGMs are now recognized as a global best practice that enhances shareholder accessibility and participation. This format strengthens corporate governance, fosters deeper trust between companies and investors and supports informed decision-making that contributes to long-term value creation.
Shareholder engagement is a value-building opportunity. AGM participation should be treated by companies as a platform for meaningful two-way exchanges, rather than as an adversarial exercise. Constructive engagement fosters transparency, strengthens relationships with shareholders and promotes accountability.
Ensuring equal participation for all shareholders is paramount. In line with the G20/OECD Principles of Corporate Governance, AGMs should ensure equal opportunity for all shareholders to engage with the Board, ask questions, and access relevant company information and proposals. This approach supports robust governance frameworks and reinforces investor confidence.
Best Practice Highlights
BCI has published a full whitepaper with more detailed guidance that can be found here. However, I will briefly share some of the more important best practices found in the paper.
Firstly, although it sounds basic, issuers should ensure that directors attend the AGM and have the Board Chair or Independent Lead Director preside over the meeting. This helps support accountability and avoids the risk of the AGM becoming another earnings call that duplicates management commentary. This should be evident with the use of live video for presenters – both directors and management.
An engaging Questions & Answers portion of the AGM requires this, as well as the need for Directors to answer governance and risk oversight-related questions rather than defer to management. Investors also expect the external auditors to be present to address any questions about the financial statements or sustainability assurance provided.
Shareholders having the ability to ask questions in a meaningful way is one of the central advantages of hybrid AGMs. It is important that written questions are visible to all participants and, ideally, virtual microphones are available for shareholders to phrase questions in their own words. Reliance only on written questions submitted in advance can stifle engagement and limit participation rather than foster a two-way dialogue.
The Opportunity Ahead
Despite policy uncertainty in some jurisdictions, the fundamentals haven't changed: strong governance protects long-term value, and many investors continue to advocate for the standards that support it. The AGM is a key component of this for shareholders. I would encourage companies to think of the AGM as an opportunity – to engage, get feedback and demonstrate sound corporate governance. AGM practices will continue to evolve, but I hope our whitepaper makes a meaningful contribution that spurs dialogue and leads to best practice implementation. This is certainly not the last word on the subject, as real-world experiences will continue to inform what constitutes best practice.