Virtual-Only Meetings Erode Shareholder Democracy, Institutional Investor Group Warns

A group of institutional investors is voicing concerns about the rise of virtual-only shareholder meetings that they say risk eroding shareholder democracy. In an open letter released on April 18, the coalition of 38 investors led by the B.C. General Employees’ Union called on S&P/TSX 60 companies to publicly disclose how they will ensure shareholders’ statutory and common law rights are being upheld. “The essence of shareholder democracy lies in the robust exchange of perspectives and the accountable exercise of shareholder rights,” said Paul Finch, chief financial officer of BCGEU, in a statement. He said that while technology can enhance shareholder democracy, he’s concerned some issuers are using virtual meetings in ways that erode rights....