Online AGMs being used to ‘swerve’ shareholder scrutiny
Companies are using online-only annual general meetings to stage-manage events and ‘swerve’ shareholder scrutiny, campaigners have warned.
Nationwide Building Society, Santander and defence firm BAE Systems are among a growing list of firms to move to a digital-only format that bars investors from turning up in person.
The Mail on Sunday is campaigning for FTSE 100 firms to hold face-to-face annual meetings in the UK.
Shift: Nationwide Building Society, Santander and BAE Systems are among a growing list of firms to move to a digital-only AGM format
But in a blow to shareholder democracy, ministers want to give firms the power to host fully virtual AGMs, a practice which has become common in the US.
In a report out this week, lobby group ShareAction will claim this would lead to worse decision-making and poor performance.
It notes the case of Kraft-Heinz, the US owner of HP Sauce, whose online-only AGM this year lasted 13 minutes.
Kraft-Heinz claimed no questions had been submitted, despite ShareAction submitting one in advance and at the AGM.
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