03:07:47 EDT Thu 25 Apr 2024
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Globe says OSC, others mull future of on-line AGMs

2021-11-22 06:18 ET - In the News

See In the News (C-*OSC) Ontario Securities Commission

The Globe and Mail reports in its Monday edition that the Canadian Securities Administrators (CSA) is holding informal meetings with investors to gather information about their experiences with virtual shareholders' meetings during the COVID-19 pandemic. The Globe's Rita Trichur writes that this past spring's AGM season marked the second time that companies used the virtual-only format because of pandemic restrictions prohibiting large gatherings. Trouble is, the quality of on-line AGMs varied again this year. Although some companies tried to make virtual-only gatherings more interactive for investors, others failed to fix flaws with the meeting format, which had the effect of silencing shareholders. As a result, some investors are complaining that on-line meetings are shielding directors and executives from proper scrutiny. With virtual AGMs continuing in some capacity after this pandemic, new regulation is needed to protect shareholder rights. So far, the CSA is being circumspect about its plans. Although its staff is gathering information on "the potential benefits and concerns" about the on-line meeting format, it won't say if this informal consultation will result in new rules ahead of next spring's AGM season.

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