Proposed reforms to allow virtual AGMS


The Australian Government’s Treasury Department has proposed making permanent the temporary laws allowing listed companies to hold virtual-only general meetings.


Sandon Capital believes this is a poorly conceived proposal that risks a dangerous disenfranchisement of shareholders and their rights and will likely serve to further the entrenchment of company directors, both the good and, more worryingly, the bad.


It also fails to consider the experience in other jurisdictions, notably the United Kingdom, where investors general eschew virtual-only meetings in favour of hybrid ones (that is, physical and virtual combined).


We have made a submission in response to the exposure draft legislation.