In a recent discussion with Lucinda Steenkamp, Senior Legal Advisor at the Companies and Intellectual Property Commission (CIPC), we explored CIPC Guideline 1 of 2024 for hybrid and virtual Annual General Meetings (AGMs).
As more companies transition to virtual and hybrid formats, these guidelines are crucial in ensuring compliance with the Companies Act while promoting effective shareholder participation. Lucinda shared her insights on how businesses can navigate these guidelines to enhance their AGMs.
Guideline 1: allow matters to be raised for consideration as AGM business items
The first guideline emphasizes that shareholders should be allowed to propose matters for consideration during the AGM. This ensures that all shareholders have a say in the decision-making process. Lucinda explained:
“It’s important that shareholders have the opportunity to raise matters they believe should be discussed. This can be managed in a virtual or hybrid setting by allowing shareholders to submit their proposed items in advance or interact during the meeting through live chat or digital forms.”
By utilizing digital platforms that enable the submission of business items, companies can ensure inclusivity and allow shareholders’ voices to be heard.
Guideline 2: allow a combination of written, verbal, telephonic, and video questions
Effective shareholder participation is central to the CIPC guidelines. Lucinda emphasized the importance of offering multiple communication options for shareholders:
“Shareholders should not be limited to one form of communication. Allowing questions via written, verbal, telephonic, and even video ensures a wider range of participation, especially for those who may face technology barriers. Flexibility in how questions can be asked is critical for inclusivity.”
This flexibility ensures that all shareholders, regardless of their preferred communication method or technological access, can engage meaningfully.
Guideline 3: provide an agenda at the start of the AGM, detailing when shareholders can ask questions
A clear and accessible agenda is another vital component of a successful AGM. The CIPC requires companies to provide an agenda at the start of the meeting, detailing when shareholders can ask questions. Lucinda explained:
“By setting clear expectations on when questions will be asked, we ensure that the meeting runs efficiently and shareholders know exactly when they can raise their concerns. It also prevents interruptions and ensures the meeting stays on track.”
This transparency allows shareholders to prepare and contributes to a more structured and organized meeting.
Guideline 4: ensure shareholders can see and know who else is attending the AGM online
Lucinda also stressed the importance of transparency regarding other attendees. Shareholders must be able to see who else is attending and be able to interact with one another. She highlighted:
“Shareholders must be able to see and interact with each other in real time. It’s about ensuring transparency and facilitating shareholder discussions, just as they would in a physical meeting. This level of visibility is crucial for building trust in the process.”
By enabling direct interaction among shareholders, companies can foster a more dynamic and inclusive meeting environment.
Guideline 5: ensure all participating Board and Executive Members are visible in real-time
Finally, the CIPC guidelines stress the need for visibility of all board members and executives throughout the meeting. Lucinda noted:
“Visibility of board members is critical to ensure that shareholders know who is present and participating in the meeting. This transparency is essential for fostering trust and engagement. Shareholders need to feel confident that the leadership is available and present throughout the entire AGM.”
Maintaining the visibility of board members throughout the meeting helps ensure a more personal and interactive experience for shareholders.
Why these guidelines matter
Lucinda Steenkamp emphasized these guidelines are designed to help companies meet both legal compliance and effective shareholder engagement. By implementing these guidelines, businesses can host AGMs that are inclusive, transparent, and well-organized, while adhering to the Companies Act.
Lucinda concluded:
“The goal is to ensure that companies can host meetings that not only comply with the legal requirements but also provide shareholders with an opportunity to participate actively and meaningfully. These guidelines support that aim by enhancing the quality of shareholder engagement.”
At Lumi Global, we are proud to offer solutions that align with these guidelines. Our hybrid meeting platform ensures seamless communication, allowing companies to manage business items, facilitate multi-channel questions, provide visibility for all participants, and ensure a compliant, efficient, and engaging AGM experience.
For companies planning a hybrid or virtual AGM, adopting platforms that adhere to CIPC Guideline 1 of 2024 is essential for conducting a successful and compliant meeting that fosters meaningful engagement with all stakeholders.
Catch up on our webinar with Lucinda covering the latest CIPC guidelines or
get in touch with the team today to see how we can help make your next AGM a success
