Virtual Annual General Meetings in South Africa: Navigating Governance Challenges

Abstract

Virtual annual general meetings (AGMs) have become the most common format for conducting AGMs for South African public listed companies. Although they have many advantages, they also raise concerns about potential infringements of shareholders’ rights, the quality of shareholder engagement with the board of directors and the equitable treatment of shareholders by the board – concerns that could compromise the validity of decisions taken at an AGM. This article examines three key governance concerns associated with virtual AGMs in South African companies: the management of shareholders’ questions, the integrity of electronic voting and digital security risks. In addressing digital security risks, the focus is on verifying shareholders’ identities during a virtual AGM, managing technical disruptions on virtual platforms and mitigating cybersecurity threats. The article concludes with recommendations for amending the South African Companies Act 71 of 2008 to address these governance concerns in the context of virtual AGMs.