After a long wait, the Treasury has completed its review into AGMs and published the findings. The document supports the efficient operation of Australian companies and capital markets and highlights several key updates to the rules governing corporate meetings under the Corporations Act.
In this blog, we will summarise the panel's recommendations in relation to hybrid and virtual meetings, and detail how the Lumi Global platform can help your business run shareholder meetings that matter.
What were the Treasury’s findings?
The final report, which you can find in its entirety here, recognises the importance of shareholder participation during meetings, as well as the need for flexibility and transparency when running shareholder meetings when trying to achieve good corporate governance.
Within the document, there are several key updates regarding virtual and hybrid meetings as well as to the rules governing corporate meetings.
- Virtual meetings
The reforms make it clear that companies still must have a physical component to their meeting unless their constitution specifically states they can hold a virtual meeting. Companies must ensure that virtual meeting technology enables full participation from shareholders, including the ability to ask questions and vote in real-time.
- Hybrid meetings
Companies are encouraged to consider hybrid meetings, where participants can attend both in-person and online. This option is particularly beneficial in accommodating a wider range of stakeholders, especially those who may face geographical or time constraints.
- A technology-neutral approach
The rules set out by the Treasury adopt a "technology-neutral" stance, meaning companies are not required to use any specific type of technology to run shareholder meetings. This flexibility allows businesses to choose tools that suit their size, structure, and needs while staying compliant with legal requirements.
These updates and changes reflect the way that modern meetings are conducted in the digital age, offering shareholders and companies greater flexibility, cost savings, and enhanced shareholder participation, while ensuring companies meet their legal obligations and responsibilities.
How can Lumi Global help keep hybrid or virtual shareholder meetings compliant?
The Lumi Global platform offers many features that are in line with the Treasury’s new guidelines for hybrid or virtual shareholder meetings. These include:
- Flexible meeting formats
The report has specified that virtual meetings are still only permitted where the company’s constitution allows for this format. This mirrors the UK where some of Lumi Global’s clients, such as AstraZeneca and M&S, have conducted digital-first meetings that comply with legislation yet benefit from the advantages of a virtual meeting.
- Audio questions
The Panel has confirmed with ASIC that it does not consider there is a legal requirement for a backup telephone line where the platform being used allows audio questions. Lumi Global is the only supplier of a complete AGM platform with integrated audio questions, therefore the complications and expense associated with a separate phone line are removed.
- Verbal and written comments
ASIC confirmed the legislative requirement to allow members a reasonable opportunity to ask questions and make comments both verbally and in writing is satisfied so long as the virtual technology allows members to exercise their rights both orally and in writing. By utilising a truly integrated platform such as Lumi Global, both question formats are managed from a single portal rather than across multiple platforms, allowing for a truly inclusive shareholder experience.
Is Lumi Global the right meeting platform for your next AGM or shareholder meeting in Australia?
There are several reasons why the Lumi Global platform is the perfect fit for your next shareholder meeting:
- Bespoke end-to-end service
From the meeting set up, to broadcast and question moderation, Lumi Global’s highly skilled team will assist at every stage of your event.
- Advanced hybrid and virtual technology
According to the Treasury report, on the whole, Co-Secs want to see meetings move to a fully virtual format. Lumi Global’s integrated technology can support this completely.
- Powerful shareholder communication
Lumi Global’s technology gives every shareholder a voice. This speaks to the ASIC’s confirmation that the legislative requirement to allow members a reasonable opportunity as a whole to ask questions and make comments both verbally and in writing is satisfied so long as the virtual technology allows members to exercise their rights both orally and in writing.
- Transparency that builds trust
The Lumi Global platform, which allows shareholders to put forward oral questions without the additional cost of a phoneline, puts shareholders at the heart of the meeting, making sure they are engaged and have the opportunity to participate.
Transform your next AGM with the Lumi Global platform
Lumi Global is the only meeting platform that has in-built virtual technology which allows for oral questions to be asked without a phoneline. Ultimately, our packaged offering will save you inconvenience and extra associated costs when planning your next AGM.
To speak to a member of the Lumi Global team and learn about how we can help you create compliant and exceptional AGMs with our advanced hybrid and virtual technology, book your meeting here.
