Thanks to advancements in digital technology and high-speed internet, annual general meetings (AGMs) can be conducted virtually. Virtual AGMs have been particularly useful during the Covid-19 pandemic, when large meetings are not encouraged. However, these AGMs could potentially increase the risk of shareholders’ rights being infringed and allow board members to avoid accountability. A recent example, documented by the Minority Shareholders Watch Group (MSWG), was the virtual AGM of Menang Corp (M) Bhd on Dec 30. MSWG said in its weekly newsletter that none of the questions raised by the watch group were answered by Menang’s board of directors during the meeting. It had raised a question about the absence of a two-tier voting process for the retention of its independent non-executive director Chiam Tau Meng, who has served more than 12 years in that role. The Malaysian Code on Corporate Governance states that a board should seek shareholders’ approval through a two-tier voting process if it intends to retain an independent director after the 12th year.

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Corporate Governance