Investor Relations

148INVESTOR RELATIONS3.6.19 The Annual General Meeting (AGM)The AGM plays a crucial role in shareholder democracy. They are strictlyregulated, with schedules and legal requirements that vary from one countryto another.Dispute-free AGMs are a sign of good governance. However, there issometimes verbal abuse or belligerent questioning or unintelligible questionsfrom individual shareholders.Every listed company will probably tell you that there is a difficultpath to tread between showing respect for the shareholders and overdoingit from a commercial perspective. Companies should learn issues thatare likely to cause problems and make a conscious effort to be proactive,raising difficult questions themselves rather than waiting for shareholdersto do so.Companies should try to make sure that any new information includedin the CEO’s speech should go out simultaneously as a press release aswell, giving some flavor about an initiative or explaining a strategic pointof view.In certain countries, regulations are in place that set a time limit tothe Q&A session. They are meant to avoid having to answer for hourson end questions that have little bearing with the meeting. The qualityof answers relates to the CEO and chairman and how seriously they takethe AGM.In the longer run, AGMs could move online. In the meantime, they arelikely to remain one of the IRO’s most dreaded activities, time-consumingand demanding events.AGMs offer a unique opportunity for dialogue: Regulations are widelychanging to make it simpler and more attractive for shareholders to vote.Listed companies that have large numbers of foreign shareholders or asignificant free float should provide documents in English, if this is not theirworking language. They should opt for electronic dissemination of votingdocuments whenever regulations so permit or require.Corporate and Investor Relations teams should work together throughoutthe event to convey the company’s values and culture. The meeting is, in mostcases, the only time shareholders can see and interact with the chairman andexecutives. It is an opportunity for the company to promote its image; whilethere can be some conviviality, there may also be fierce debates. The focusshould consistently be on presenting the company’s strategy. It is always agood idea for board members to be present, especially those whose appointmentis submitted to a vote.In more and more cases, larger companies are broadcasting live orrebroadcasting their AGMs on the Internet.