SECP makes shareholders’ virtual participation in AGMs a permanent feature

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), with the objective of ensuring protection of minority shareholder’s interest, as well as safeguarding their wellbeing, has directed all listed companies to facilitate virtual attendance of shareholders through electronic means, as a regular feature in annual general meetings (AGMs), through Circular No. 4 of 2021.

Last year, amidst the COVID-19 pandemic, the SECP had allowed companies to arrange electronic facilities to ensure maximum participation of shareholders at AGMs, to deter large gatherings, said a press release issued here.

This ease of participation in attending shareholders’ meetings, led to an increased participation of members in the AGMs, which is a very positive development for the corporate sector.

Considering its beneficial impact, the electronic participation has now been made a permanent feature, in addition to the existing requirement of holding AGMs physically, at specified venues.

In physical AGMs, companies are required to comply with the SOPs of the federal and provincial governments relating to COVID-19 Pandemic, as notified from time to time.