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Publishing AGM notices in newspapers is ‘most efficient’, inclusive approach

The letter, "Listed companies should relook AGM and annual report practices" (April 15), raised many valid points. It is encouraging to know that there are shareholders such as the letter writer who are enthusiastic about engaging companies añd stakeholders on such matters.

Publishing AGM notices in newspapers is ‘most efficient’, inclusive approach
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The letter, "Listed companies should relook AGM and annual report practices" (April 15), raised many valid points. It is encouraging to know that there are shareholders such as the letter writer who are enthusiastic about engaging companies añd stakeholders on such matters.

The point on the relevance, or irrelevance, of publishing notices of Annual General Meetings (AGMs) in the newspapers in this day and age is worthy of some scrutiny.

The Companies Act requires written notice of the AGM to be sent to all members, including the Official Assignee overseeing any bankrupt members’ affairs, the auditor of the company, the estates of any deceased members, and any other persons so specified in the company’s Articles of Association.

The notice of the AGM may be sent by various means, including in person, by post, by email, by other forms of electronic communications, or by any other means so permitted by the company's constitution.

Given all these requirements, publishing notice of the AGM in the newspapers is the most efficient and inclusive choice which does not discriminate against or short-change shareholders who are not Internet-savvy or have no access to the Internet, or both.

Moreover, there is some investment research which suggests that there is a correlation between stock returns and AGMs being held. There are, hence, potential advantages to be enjoyed by the astute and industrious investor who has the patience and diligence to study and pay attention to the timings of AGMs.

In this context, publishing notice of AGMs in the newspapers — which are accessible to all including those who are not Internet-savvy — is really a rather valuable tool for investment analysis purposes which potentially yields benefits for stock market liquidity and which, we should hope, does not become passe anytime soon.

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