To counter COVID-19, the pandemic of the century, all Annual General Meetings (AGM) of publicly traded companies were delayed this year. The postponement is the first time in the history of the securities market. However, a crisis may be a turning point. The waves of digital transformation have also facilitated the evolution of the shareholder meeting systems. For example, companies that meet specific requirements may choose to convene their physical AGMs with video conferencing as assistance. The format of hybrid meetings has helped issuers ensure their successful AGMs and pandemic preparedness in 2021.

Under the guidance of the Financial Supervisory Commission (FSC), it took only a little longer than two months for the Taiwan Depository & Clearing Corporation (TDCC) to launch the Platform for Shareholder Meetings with Video Conferencing as Assistance. The platform was available for companies that convened shareholder meetings between August 16 and August 31. The one-stop services for AGMs aim to reduce breakpoints in between agendas and seamlessly coordinate procedures like sign-ups, registration, check-ins, live streaming, online questions, voting, and ballot counting. The integration aligns our AGM workflow with the mainstream of international practices.

In 2021, 17 TWSE-listed, TPEx-listed, and publicly traded companies had applied to use the platform. As the domestic pioneers of digitalized shareholder meetings, they are one step ahead in the digital era. As of August 30, all 17 issuers have concluded their AGMs. The platform worked smoothly when shareholders signed in for check-ins, raising questions, and casting votes. The internet connection for their virtual meetings was also satisfying. Disconnecting problems that had concerned people didn’t occur. The results show that modern information technology is sufficient to overcome the operation hurdles that used to bother us. In these meetings, chairpersons have answered all questions raised by shareholders who had registered to join via virtual communication methods. It is fair to say that the overall operation of the system is a success.

TDCC President Han-Chiang Chu stated that though it is our first attempt to run shareholder meetings with video conferencing as assistance, the so-called hybrid shareholder meetings have long been practiced in other countries for years. In fact, issuers still have to conduct physical shareholder meetings. However, they also need to provide an alternative that alleviates physical space constraints for eligible shareholders who are unable to attend physically and hope to attend in person to join them virtually. Apart from e-voting services, this new practice also effectively fulfills shareholder activism. Meanwhile, the TDCC will keep addressing the needs of digital transformation. Starting from next year, under the FSC’s guidance, the TDCC will update the Shareholder Virtual Meeting Platform and provide more comprehensive functions according to the amendments of the Company Act and relevant regulations.

The Platform for Shareholder Meetings with Video Conferencing as Assistance: https://reurl.cc/ZGEZVp