AGMs matter because in addition to a slice of the company’s cash flow proportionate to your equity ownership, a company’s shares come with certain rights. These include the right to call for a general meeting, to elect their representative on the board, to access company documents, and to engage with the board and management on critical issues. And as Indian regulations offer a low degree of delegation to the board, investors get to vote on innumerable items, such as approving accounts, signing off on related party transactions or appointing a cost auditor. These rights – for the most, are exercised at the AGM.

While the number of shareholders continues to rise, shareholder participation in AGMs has steadily been declining. Today the two primary purposes of attending a shareholder meeting - voting and engagement with management, are falling outside the box. A pointer that AGMs are broken and need a cure.

Read our blog here

Subscribe to IiAS Voting Recommendations. Subscribe to IiAS Adrian.