Hybrid approach strikes 'right balance between accessibility and engagement'
Publicly listed companies (PLCs) on Bursa Malaysia will no longer be allowed to hold fully virtual general meetings starting March 1, 2025.
Securities Commission Malaysia (SC) and Bursa Malaysia Berhad announced on Friday that all PLCs should hold hybrid or physical annual general meetings (AGMs) instead.
"Shareholder meetings, especially AGMs, are important sessions to engage the board and management," said SC chairman Datuk Mohammad Faiz Azmi in a statement. "Domestic and international investors have also expressed their preference for hybrid or physical meetings. It reinforces good governance by promoting transparency and accountability."
Datuk Muhamad Umar Swift, chief executive officer of Bursa Malaysia, said they fully support the hybrid approach as it strikes the "right balance between accessibility and engagement."
"While virtual participation enhances accessibility, PLCs should strive to hold general meetings in a hybrid model or at least in a physical format," the Bursa Malaysia CEO said in a statement.
According to Umar, physical meetings "preserve the sanctity of shareholder rights" and ensure that no one is excluded due to technological barriers.
"This ensures meaningful shareholder engagement, safeguards shareholder rights, and upholds the integrity of the general meeting process."
The order was issued after they observed that more than 50% of AGMs were still conducting fully virtual AGMs in the first half of 2024, which were previously allowed during the pandemic.
