Firms must allow shareholders’ physical, online presence in general meetings

From now on, the companies listed on the stock market must keep options for shareholders to participate in all general meetings either in person or virtually.

The Bangladesh Securities and Exchange Commission (BSEC) on Wednesday issued a directive making the rules mandatory for the listed firms.

According to the directive, a company must conduct its annual general meetings (AGMs) and extraordinary general meetings (EGMs) using a hybrid system that would combine the physical presence of a percentage of shareholders at the venue and joining by the remaining shareholders over a digital platform to ensure shareholders rights and compliance with regulatory frameworks.

The companies must notify its shareholders about the address of the meeting venues and web-links for joining the meeting with intimation to the commission and stock exchanges.

The companies must set up a facility through which shareholders would exercise their voting rights, either through paper ballots or electronic ballots, on the resolution proposed to be considered at the general meetings.

The voting system will have a pre-registration facility for attendance of shareholders casting votes and have a log platform.

An issuer company will provide a one-way live display of the proceeding of its general meeting.

Independent service providers or any other entity appointed by the company must provide the service on the digital platform for conducting general meetings or e-voting.

The stock exchanges may nominate any of their senior officials as an observer to oversee the voting process adopted at the general meetings.

The election process and detailed information of the voting results must be authenticated by the stock exchanges. Besides, the authenticated report must be submitted to the commission within two days.

Earlier, the commission has facilitated the listed companies to hold AGM or EGM online amid the pandemic.