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Seeweekly news
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2005-11-21 |
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Easynet Wins CIS AGM of the Year Award |
Easynet, the pan-European broadband provider, today won the Co-operative Insurance Society's (CIS) Annual General Meeting of the year award.
Representatives from CIS, who attend scores of company AGMs each year, chose Easynet's annual shareholders' meeting in April as the best they attended in the past 12 months.
CIS' representative reported: "The meeting was conducted in a professional, orderly manner, which managed to sustain an intelligent dialogue between shareholders and the board. It achieved the right balance of formality and informality. The attitude of the Board, particularly of the Chairman, to shareholders was one of openness without being acquiescent. Shareholders' contributions were clearly welcomed and responded to seriously and candidly."
Ian Jones, Head of Corporate Governance at CIS said: "As part of our commitment to responsible shareholding, we attend as many company general meetings as possible. Unfortunately, we come across plenty of examples of bad practice, where companies do not seem to take the AGM seriously, so it is good to recognise a company that treats the AGM as a valuable forum for genuine engagement with shareholders."
Easynet's Non-Executive Chairman Keith Todd said: "A successful AGM should reassure company stakeholders of their decision to invest, and give them absolute confidence in the board and management team. We're delighted to accept the CIS award, as recognition that Easynet has achieved 'best practice' investor relations. It demonstrates the value Easynet places on maintaining an open dialogue with shareholders at all times."
However, not all AGMs are of Easynet's standard, and, for the first time, CIS has also awarded Amstrad the wooden spoon for the worst AGM attended during the year.
Ian Jones explained: "Amstrad's Chairman Sir Alan Sugar did not attend because he was 'away on business'. For a plc what more important business can there be than the annual shareholders' meeting? And to make things even worse the deputy chairman was also away on business."
CIS representatives have put together a list of the good, the bad and the ugly of AGM practices.
AGM PRACTICE
The Good
- Chairman's positive and polite attitude towards shareholders
- Questions answered without evasion or an undertaking given to provide information requested
- Ample opportunity given for questions before any of the resolutions are passed
- Clear voting opportunities to vote FOR or AGAINST
- The appropriate director answers questions (e.g. the Remuneration Committee Chairman should answer questions on remuneration, not the CEO)
- Attendance by full board at meeting
- Clear, comprehensive presentations by CEO, FD etc
- Tour of office/plant available (where appropriate)
- Timing and location to suit shareholders' needs
- Ability of Chairman to balance (a) letting shareholders have their say, and (b) curtailing the questions of investors who merely want to rant and rave in public.
- Clear presentation of proxy votes after each resolution
- Directors mingle with shareholders after the meeting
The Bad
- Chairman brushes off questions and is not courteous to shareholders
- Directors criticise institutional investors for attending the meeting and asking questions
- Chairman is ill prepared
- Meeting held at inconvenient time and place to discourage large attendance
- Not all board directors are present
- Chairman allows meeting to be hi-jacked by special interest groups
- No opportunity to speak with directors after the meeting is closed
- Proxy votes not disclosed
The Ugly
- Chairman's inability to chair a meeting or riding 'rough-shod' over proceedings
- No opportunity given to shareholders to ask questions/vote AGAINST a resolution
- Chairman/directors openly criticise the company's products
- Chairman fails to call a poll on close proxy vote
- Director falls asleep during meeting |
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