The Securities and Exchange Commission of Pakistan (SECP) has directed all listed companies to facilitate virtual attendance of shareholders through electronic means, as a regular feature in annual general meetings (AGMs), through Circular No. 4 of 2021.
The decision has been taken with the objective of ensuring the protection of minority shareholder’s interests, as well as safeguarding their wellbeing.
Last year, amidst the COVID-19 pandemic, the SECP had allowed companies to arrange electronic facilities to ensure maximum participation of shareholders at AGMs, to deter large gatherings.
This ease of participation in attending shareholders’ meetings, led to increased participation of members in the AGMs, which is a very positive development for the corporate sector.
Considering its beneficial impact, electronic participation has now been made a permanent feature, in addition to the existing requirement of holding AGMs physically, at specified venues.
In physical AGMs, companies are required to comply with the SOPs of the federal and provincial governments relating to the COVID-19 Pandemic, as notified from time to time.