Invest
Are virtual AGMs bad for retail investors?
An Australian fund manager is marshalling nearly 90,000 shareholders against the federal government’s plan to make virtual annual general meetings permanent, arguing that it is “undemocratic” and “grossly unfair to retail investors”.
Are virtual AGMs bad for retail investors?
An Australian fund manager is marshalling nearly 90,000 shareholders against the federal government’s plan to make virtual annual general meetings permanent, arguing that it is “undemocratic” and “grossly unfair to retail investors”.
Investors are making plans against Treasurer Josh Frydenberg’s goal to make online-only shareholder meetings permanent, with investors saying it will allow company executives a way to avoid answering difficult questions.
Leading the charge is Wilson Asset Management chair Geoff Wilson who campaigned against Labor’s franking credit policy last year and has mobilised his 88,000 shareholders to block the government’s move.
Mr Wilson has encouraged retail shareholders to join WAM in “arguing for AGM transparency and accountability to be upheld”, saying it is firmly opposed to a move that will “diminish retail shareholders’ rights”.
“Conducted in person, AGMs provide retail investors with the ability to directly and publicly asks questions of a company’s board of directors,” Mr Wilson said in a letter to shareholders.
“The virtual alternative, as we have experienced this year, allows boards to omit, rephrase and reinterpret shareholders’ questions. Retail shareholders will be unfairly impacted by this proposal as they have limited access to a company’s board and management team outside of an AGM.”
Companies have been temporarily permitted to hold virtual AGMs in order to comply with social distancing measures, but the Treasury has opened a consultation on making them permanent. WAM has provided shareholders with a template response that could be submitted to the Treasury ahead of the close of the consultation period on 30 October.
“As a retail shareholder, I oppose the proposed relaxation of companies’ requirement to conduct transparent AGMs,” the template reads.
“Without physical meetings, retail shareholders will face yet another disadvantage in accessing companies, asking questions and participating in a transparent process.”
Mr Wilson has utilised similar tactics before during a campaign against the Labor Party’s efforts to remove franking credits – a move he said was “doomed to fail”.
“Labor’s proposal would impact the entire economy and cause suffering to low-income earners and modest retirees who have worked and saved under a fair system that should be respected and safeguarded… it should be abandoned to protect the living standards of all Australians,” Mr Wilson said at the time.
RELATED ARTICLES
About the author
About the author
Shares
DREST gears up for innovation with the appointment of new co-CEO and CTO
Luxury fashion and lifestyle mobile game DREST has announced significant leadership changes as it prepares for an exciting phase of development and expansion. Read more
Shares
Hope for investors scared by share and crypto crashes
As share markets and cryptocurrency take a beating following the tightening of monetary policy across the world, investors are contemplating their next move. Read more
Shares
Cannon-Brookes tries to block AGL demerger
Mike Cannon-Brookes is not giving up on AGL after the latter announced 15 June as the date of the demerger vote. Read more
Shares
Qantas set to acquire Alliance Aviation
The two airlines have entered into a scheme implementation deed. Read more
Shares
Bond and share investors may shrug off RBA’s rate hike
As mortgage holders reel from the prospect of having to reach deeper into their hip pockets to make bigger repayments following the Reserve Bank of Australia’s (RBA) interest rate hike from 0Read more
Shares
How to buy Shares: A beginner’s guide in 2022
So you want to get in on the stock market action? Congratulations, that’s an exciting step! But first, there are a few things you should know before you buy your first shares. Read more
Shares
Elon Musk chokes up on bid to swallow Twitter
The battle of the bird has intensified over the last week, as Tesla and SpaceX founder Elon Musk has ramped up his aggressive campaign to buy the entirety of social media giant, Twitter. Read more
Shares
How to Make Money in Short Selling
What is short selling? There is a common practice for people who actively trade in the stock market, which is to “buy low and sell high”, but what if you can still make money by doing the opposite? Read more
Shares
DREST gears up for innovation with the appointment of new co-CEO and CTO
Luxury fashion and lifestyle mobile game DREST has announced significant leadership changes as it prepares for an exciting phase of development and expansion. Read more
Shares
Hope for investors scared by share and crypto crashes
As share markets and cryptocurrency take a beating following the tightening of monetary policy across the world, investors are contemplating their next move. Read more
Shares
Cannon-Brookes tries to block AGL demerger
Mike Cannon-Brookes is not giving up on AGL after the latter announced 15 June as the date of the demerger vote. Read more
Shares
Qantas set to acquire Alliance Aviation
The two airlines have entered into a scheme implementation deed. Read more
Shares
Bond and share investors may shrug off RBA’s rate hike
As mortgage holders reel from the prospect of having to reach deeper into their hip pockets to make bigger repayments following the Reserve Bank of Australia’s (RBA) interest rate hike from 0Read more
Shares
How to buy Shares: A beginner’s guide in 2022
So you want to get in on the stock market action? Congratulations, that’s an exciting step! But first, there are a few things you should know before you buy your first shares. Read more
Shares
Elon Musk chokes up on bid to swallow Twitter
The battle of the bird has intensified over the last week, as Tesla and SpaceX founder Elon Musk has ramped up his aggressive campaign to buy the entirety of social media giant, Twitter. Read more
Shares
How to Make Money in Short Selling
What is short selling? There is a common practice for people who actively trade in the stock market, which is to “buy low and sell high”, but what if you can still make money by doing the opposite? Read more
