Date Released: May 25th 2023
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Recent research undertaken by The New Zealand Shareholders’ Association (NZSA) has highlighted the value placed on ‘hybrid’ meeting formats by investors – but also shows a declining overall level of attendance at Shareholder Meetings of NZX-listed companies since 2019, across all meeting formats.
The ‘hybrid’ meeting format comprises both a ‘physical’ and ‘virtual’ component to cater for the disparate needs of its shareholders.
A recent survey undertaken by NZSA amongst investors showed that 72% of respondents favoured hybrid meetings. “Investors believe that this combines the best features of each format – the virtual component allows all shareholders to participate, regardless of their location, while the physical component allows effective face-to-face shareholder engagement with their directors” says NZSA CEO, Oliver Mander.
NZSA Survey data, April 2023
Despite that, the same research also showed a declining level of shareholder meeting attendance by shareholders. Regardless of meeting format, overall average attendance for all meeting formats – physical, virtual, hybrid – has declined by approximately 24% since 2019. This decline is more marked for hybrid meeting formats, with a reduction on a like-for-like basis (2019 v 2022) averaging 30%.
While NZSA had observed declining physical attendances at many hybrid Shareholder Meetings, attendance data shows that this has not been offset by an increase in virtual attendance – indicating an overall decline in investor attendance.
“A Shareholder Meeting continues to be a key interaction between a company and its shareholders, with shareholder agency a key underpinning factor in the development of companies throughout history” says NZSA CEO, Oliver Mander.
“For investors, it’s always important to be represented – even if you’ve outsourced your investment decision-making to a DIMS provider, it’s important to be an informed customer. For issuers, we think it’s important that the Shareholder Meeting is regarded as a ‘good cost’ – a cost that shareholders are willing to bear to provide assurance and representation.”
NZSA maintains a best-practice policy encouraging the provision of virtual and physical attendance options for shareholders, ‘right-sizing’ the physical component of their Shareholder Meetings to suit their shareholder base and physical attendance levels, and providing insight that adds value to shareholders.
Additional Information#
NZSA Shareholder Meeting Policy
NZSA Scrip Magazine Commentary, May 12th 2023
NZSA coverage of shareholder meetings (this includes Special Meetings and Annual Meetings for NZX and some USX issuers)
