Companies move shareholder meetings online amid shutdown
In a first for Bangladesh, listed companies are employing virtual platforms to carry annual general meetings within their business continuity plans while avoiding mass gatherings and maintain social distancing when confronted with coronavirus outbreak in the country.
The move to virtual platforms employs the Bangladesh Securities and Exchange Commission (BSEC) on March 24 temporarily relaxed rules on holding AGM or extraordinary general meeting (EGM) and board meetings on digital platforms to support the spread of the deadly bug.
The companies whose record dates were after March 25 can hold their AGM online, said a high official of the commission. The record date may be the cut-off date established by a company to determine which shareholders are eligible for a dividend.
GlaxoSmithKline Bangladesh was the first ever to conduct the virtual AGM on April 16, and five days later, Grameenphone, the top-listed company, followed suit. British American Tobacco Bangladesh (BATBC) can do the same today and Singer Bangladesh on, may 15.
The commission issued the guideline carrying out a proposal from BATBC, said Md Azizur Rahman, company secretary of the firm.
This will finally be beneficial to the shareholders as they will get 400 % cash dividend following the meeting, he said.
"To us, the main thing is that if the AGM could be held, shareholders are certain to get some cash. This will be helpful for them amid the lockdown and can also be helpful to the economy," Rahman told The Daily Star.
BATBC has about 19,000 shareholders and the business has shared the password with them to allow them to log on the AGM platform the business's own IT team is rolling out.
"This can be the real digitalisation as people don't need to move to participate in any programme like AGM."
The process can be easy to talk to the shareholders, who will get an total annual report through a web link within a move which will cut paper use.
Concurrently, unwanted incidents could be avoided, Rahman added.
BATBC has incorporated the voting system and the shareholders are certain to get the opportunity to share opinions and make recommendations. A number of the directors of the business are now out of your country and they'll take part in the AGM virtually.
The same happened at the AGM of Grameenphone. Some of the board members attended the meeting from Thailand and Norway. Included in this were Grameenphone Chairman Petter B Furberg and CEO Yasir Azman.
Grameenphone moved this year's AGM to the digital platform in compliance with the directives of the BSEC and taking into consideration the health and safety of all the shareholders, staff and others, the operator said.
Grameenphone has designed and developed the digital platform to run the 23rd AGM of the business online to supply continuous and meaningful shareholder engagement and participation, it said in a news release.
At the AGM, shareholders approved a 40 % cash dividend. Grameenphone has 32,000 shareholders and most of them got the password to wait the meeting and a good number of them attended.
GlaxoSmithKline Bangladesh organised the function at Radisson Blu Chattogram Bay View hotel where shareholders approved a 530 % cash dividend for the entire year that ended on December 31, 2019.
Singer's AGM will be held online from Spectra Convention Centre and the board has recommended a 77 % cash dividend for this past year.
