This report sets out a bold new vision for the purpose of the AGM of the future. It addresses how companies, shareholders, stakeholders and policy-makers can play their part in making the AGM of the future the backbone of corporate governance and investor stewardship. The report sets out recommendations for the future: it doesn’t claim to have all the answers, but the recommended actions aim to paint an unfinished picture expressing the scale of ambition required, and generate further discussions on the nuances of the changes required. As such, this piece is a means to an end, and not an end in itself.
ShareAction believes that the AGM of the future should be regarded as a key component in an annual process that encourages robust engagement between shareholders, stakeholders and the company throughout the year. This process will align their interests in a sustainable way, and inform their respective decisions on key matters. In particular, the future AGM will be a discursive meeting, bringing together the events of the last year, with a particular focus on how the directors have fulfilled their responsibilities to both shareholders and stakeholders. The annual vote by shareholders on resolutions will take place several weeks after the AGM itself.
ESG is here to stay. Its impact on all the participants in the AGM of the future should not be underestimated. Companies will continue to raise their game with stakeholder engagement. Shareholders will hear the views of stakeholders at first hand to help inform their investment and stewardship decisions, including how they hold the boards of investee companies to account, and how they vote.