Public companies are required to hold annual general meetings of
security holders. As global concern over the outbreak of COVID-19
continues to grow, so too does the clear need for shareholders'
meetings held digitally. Companies interested in holding a
"virtual-only" shareholders' meeting (a
"VOSM") should be aware of the following benefits,
potential concerns, and practical considerations.
What is a VOSM?
A VOSM is held entirely online. All of the elements of a
traditional in-person meeting - including shareholder
participation, the casting of votes, and asking questions of the
board - are substituted with a virtual platform. VOSMs have the
potential to improve accessibility for shareholders and management,
increase shareholder participation, and lower the costs of meetings
by eliminating expenses associated with traditional
shareholders' meetings such as catering and travel fees.
