As normalcy gradually return to the business environment due to effects of Covid-19 that impacted on global economy negatively, some sections of shareholders in Nigerian capital market has commended the board of directors of Stanbic IBTC Holding Plc and NPF Microfinance Bank Plc, for opening their next Annual General Meeting (AGM), to all shareholders that desired to attend.
This coming after most companies adopted the proxy style, due to the social distance policy that restricted large gathering of people in public places, due to the then ravaging Covid-19. The proxy system only allows few selected shareholders by the company to attend their meetings physically unbehalf of other shareholders, while others can attend online through any available digital platforms.
The two meetings slated for May 26, 2022, are the only one that will allow shareholders to attend, while others are still announcing proxy style. For Stanbic IBTC Holding Plc, venue of the meeting is Eko Hotel & Suites, while NPF Microfinance Bank Plc meeting venue is Muson Centre Onikan Lagos.
Commenting on the decision to allow physical attendance by Stanbic IBTC Holding directors, Anagbogu Michael Mattew said “It’s a bold move by Stanbic ibtc to obey the directives or rules set by the federal government on lifting of restrictions on social gatherings. It’s pertinent that all the other companies follow suit and stop using proxies for their Annual General Meetings. Because it will amount to going against the directives of the government”
For Ariyo Olugbosun, that manages an interactive social media platform known as Market Notifiers, where some shareholders converge to discuss capital market and other economic issues in the country and around the globe, said its the best thing for any good corporate citizen, since the federal government had relaxed on majority of the sanctions/mode on COVID-19,
Pointing out that sport activities and other public gatherings like political party-congresses, among other major events have resumed with their old fashion across the country.
He said the bitter truth is that many corporate bodies are reluctant on going back to normal shareholders meeting due to some covers they are enjoying under COVID-19 sanctions, like saving on cost, getting things done without the interventions and due participations for proper oversight of their shareholders.
Adding that “Once the board approved any policy, it was just for the information of shareholders, because meetings by proxies do not carry the same weight/authority of other stakeholders and even if there was disagreement, the directors will called for poll, which shall be in the favour of the directors due to their holdings to those in-attendance by proxy at the meeting”.
On the part of Gbadebo Olatokunbo “It’s high time the regulators like the Nigerian Exchange Limited (NGX) Securities and Exchange Commission (SEC) others in the capital market to give a new directive to companies, in-order to return to the status qou on the holding of AGMs as stated in rules/regulations”.
Noting that “While, some companies that were just getting out of the wood doesn’t wish for any relaxation on the COVID-19 sanctions, because it had been a big shield from their investors oversight on their yet to be so good results”.
