Virtual AGM: How to Host One Successfully in 2021
Keeping your AGMs running through this time is essential. Unlike a lot of meetings that have been postponed or cancelled due to COVID, AGMs are mandatory. Many companies have been doing it in some way online for years. It’s a great way to save costs and allow shareholders living further afield to attend from home. However, as user friendly as many of the video conferencing software services claim to be– all of them come with some learning curve, be it shallow or steep.
Let’s dive into core elements that create a successful virtual AGM.
Constitution
We’re starting here because it’s best to make sure the virtual AGM is Since many companies need to hold an AGM before their accounts can be approved, it’s essential to ensure that your company law allows for your AGM to be hosted online.
It’s essential that you’ve amended your company constitutional documents so that you can host a virtual AGM as well as ensure that you’re being compliant when voting by proxy online.
Security
Before choosing your video hosting platform, it’s important to think about what security measures they provide. After all, AGMs typically control the big decisions that shape how a company operates. So, it’s important that the service you choose has robust authenticity measures. That helps to prevent unauthorised third-parties from accessing the video call.
Having a backup plan
Wi-Fi cuts out, electricity outages happens or someone has to deal with a personal emergency. Unlike with an in-person call, you don’t get the same opportunity to pass the baton onto another attendee.
Give attendees plenty of notice that the AGM will be going ahead and break down how they can access the video call. Also, many video services have the options to voice call if members don’t have the technology or would prefer to access the call on their phone.
Slides are great – they help in conveying and discussing the financial statements. So if you choose to use them then it’s best for at least two members to have access and be comfortable with hosting the presentation.
Preparation
Sending out a summary of what’s going to be discussed makes for a more organised AGM. If we’re being honest, although very important decisions are being made for the company, it’s many an AGM that has been needlessly dragged out. Having everyone on the same page and having the documentation in front of them means that the hosts are less likely to be interrupted by questions that a simple AGM document had been sent out a couple of days beforehand.
Protocol
Once the apologies and minutes of the last AGM have been read out, it’s time to discuss how the meeting will be run. Disruptions to the flow of the video call tend to rise in line with the number of people on the call.
As Goldfarb describes in a recent Forbes article:
“The problem is that, while virtual annual meetings work reasonably well for most plain vanilla, uncontested situations, they are not designed for corporate battles involving activist investors or for dissident shareholders who want to see and hear an accountable management and board.”
The protocol of who can speak, and when, will differ depending on the company. The number of attendees is a major factor, but there are other variables such as the likelihood of conflict arising. For larger AGMs, one solution is to have attendees write their questions in the chat and the chairperson will allegate someone to answer.
Digital podium for directors and executives
Shareholder votes often change during the course of an AGM – and that’s why holding one is so crucial even if it wasn’t mandatory. Shareholders need to have the full scope. Transparency is crucial here. If the company decides to have Q and A’s beginning from a chatbox, again protocol should be put in place to protect against any ‘cherry-picking’ of questions. This allows shareholders whose views may not align with the board and management to have a voice. In this case, we have to work through the challenges of this format to ensure transparency and visibility.
Rehearse
Just like with your traditional AGM being prepared conveys a level of professionalism and creates a level of competence and dedication. With the virtual AGM, there are a few other aspects to consider other than your presentation skills. Chair and speaker transitions need to be considered which helps to reduce the mess that a video call can become when people consistently talk on top of each other. Consider how the voting system will be set up and how you can make this as easy as possible for the voter. Some video call software services have a secure voting system and other’s don’t so it’s something to consider when choosing your hosting platform. However, there are also add-ons or external links that you can use to open the voting polls for your shareholders.
Also, ensure your Chair has a copy of the agenda at hand, to make it easy for investors and members to follow the action.
Engagement
Now, we’re onto the dynamics of a video conference. Here it’s advisable to use the features that your video software provides. Here at Videoworks, we often create videos for AGMs which allow you to capture in motion exactly what needs to be portrayed in the AGM.
Animated content or whiteboard explainer videos allow you to summarise the key points that need delivering and help keep shareholders engaged. Having content designed ahead of the live call tends to save time in the question and answers section as you can work ahead of time to capture exactly what your shareholders will likely want to know. Also think of the practical elements, set a schedule and do your best to stick to it.
If you need help hosting a virtual AGM, we have plenty of experience helping business provide high-quality video content so that your messages get across. Get in touch with our expert creative team for help with your upcoming AGM.