I had attended many AGMs – both physical and virtual (around 15 so far this year).

I still prefer physical AGMs as in virtual AGMs, some companies avoid answering certain important questions by saying they were already covered in the compiled answers to substantial questions by shareholders (but they were not) or they would cherry-pick questions that they liked to answer and then get away by the time constraint or by citing that the questions are not substantial. In a physical AGM, however, the Chairman will be more objective and ensure all questions are answered; unlike the virtual ones.

The AGM process allows the Shareholder as owner to ask Board/Management relevant questions on the financials as well as strategic issues/plans of the company.

The AGM is very important, especially to retail investors/minority shareholders to have an avenue where the company’s financials and plans/issues can be questioned/discussed or clarified. AGMs are also platforms where all the financial reports are audited; unlike business updates where financials are not audited. Most of the AGMs I attended, the Board/Management usually tried to avoid questions by saying they will give more details in the regular business updates; but I rebutted the Chairman/Management that the business updates are not audited.

The AGM is also important because it is the platform where Board/Management’s interests, Major and Minor shareholders’ interests are exercised through the Q&A and voting. For eg. In a Company’s AGM, I highlighted to the Chairman/CEO (who is also the Major shareholder) that the Minority shareholders’ interests are not being looked after – as the company did not pay dividend since IPO and the share price plummeted to 15c today! In the AGM, the Chairman/CEO agreed to look into dividends for Minority Shareholders next year.

AGM is impactful to me as the experience below:

1. I learnt a lot more about the company’s plans, operations and financials by attending AGMs where the CEO will present the plan and the CFO will highlight the financial numbers – eg. Company G’s AGM which I attended, where the CEO and Chairman gave very good insight of plans. Or Company A’s AGM where the CEO and Chairman explained the semi-conductor industry, etc

2. Company B which is delisted. When it was still listed, I attended one of the AGMs where some Board members were arrogant and avoided questions raised. This resulted in one of the resolutions NOT being passed as minority shareholders were able to vote against it as major shareholders were required abstain from voting. This is the only AGM that I had attended where a resolution was not passed. The shocked look in the faces of the Board and major shareholders really left an impact on me as a minority shareholder – this really shows that it is important to attend the AGM and cast your votes – make it count!