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ACGA submission to Singapore MOF on Virtual AGM

On 20 February 2023, ACGA submitted a letter in repsonse to the Public Consultation on Companies, Business Trusts and Other Bodies (Miscellaneous Amendments) Bill 2023 published on 9 February 2023 which proposes to amend the Companies Act 1967, Variable Capital Companies Act 2018 and the Business Trusts Act 2004, to enable companies to hold general meetings by electronic means.

ACGA supports the use of modern technology as a pragmatic way of increasing shareholder attendance at general meetings where otherwise they would not be able to join. However, it is our view that all meetings should be held in a physical location, where investors are able to meet with the board and management in person. We also support a hybrid dynamic where shareholders can join this physical meeting through electronic means if they are unable to attend, if the technology allows them to exercise their rights.

We have strong concerns that enabling listed companies to host fully virtual AGMs on a permanent basis is not in the best interest of investors. ACGA urges the MoF, MAS and ACRA to make the holding of fully virtual AGMs among listed companies in Singapore conditional upon exceptional circumstances (such as a pandemic) being present.