Labor Senators support the use of technology to facilitate annual general meetings (AGMs) and corporate governance, including through the hybrid model proposed in this bill. In particular, we support the ability of Australians in regional and remote areas to more easily participate in AGMs.
However, the Labor Senators note there have been concerns raised by a number of stakeholders to the committee about the impact this will have on the ability of shareholders to participate effectively in meetings, and ask questions and put comments to boards.
AGMs are such critical part of business. As the Australian Council of Superannuation Investors suggests, 'company meetings, including the annual general meeting (AGM), are a key accountability and transparency mechanism and shareholders' ability to genuinely participate in them is centrally important'.
As submitters have noted, there has been a variety of experiences with virtual AGMs, so it is critical that there is the opportunity for all whether it be members of the peak organisations representing them to be able to participate, ask questions and put comments to the boards equally.
Finally, Labor Senators believe that shareholders should determine the meeting format that is most suitable for them and that what ensures is the most accessible for as many members as possible.
Labor Senators note the concerns that have been raised by the Australian Shareholders' Association:
Current technology and practice doesn’t allow the majority of shareholders a reasonable and reliable opportunity to participate in meetings. There are glitches in software, delays in delivery to the shareholder such that questions typed into the online platform are received by the company after questions on a topic are closed.
Digital natives are given privileged access to ask questions of company directors through their tech knowledge and capacity, crowding out shareholders who have less experience.
Labor Senators strongly support the ability of shareholders with less technological knowledge to participate in corporate AGMs.
The Australasian Centre for Corporate Responsibility said:
In cases of corporate misconduct that have transpired over the last several years, boards of companies that have held physical AGMs have been held to account at their AGM in a way that simply would not have been possible in a virtual-only setting. The clearest examples of this were the AGMs of Australia’s four major banks and AMP following the Banking Royal Commission, which saw shareholders interrogate the boards of those companies on instances of mismanagement. That important interaction has proved to be of value not only to shareholders, but to the whole financial services industry.
Labor Senators support the ability of shareholders to hold major banks and large corporations to account.
Noting these significant concerns raised by key stakeholders, Labor Senators recommend that the bill be subject to an independent review within two years of its implementation.
Recommendation
That an independent review of the bill be conducted within two years of its implementation date, with particular attention paid to the ability of shareholders to participate in meetings and hold directors to account.
Senator Anthony ChisholmSenator Jess Walsh
Deputy ChairMember
Labor Senator for QueenslandLabor Senator for Victoria