Some of Britain’s biggest firms are barring shareholders from attending annual meetings, The Mail on Sunday can reveal.
Drugs giant AstraZeneca, toothpaste-maker Haleon and Nationwide Building Society are among the blue-chip firms who have made their annual general meetings online-only. Critics say this violates the principle of shareholder democracy and makes it harder for investors to hold boards to account.
Companies rushed to adopt digital meetings in the pandemic. Many have since moved to a ‘hybrid’ model, where shareholders can log in to the event but can also turn up in person.
However some have moved to digital-only meetings. Campaigners believe firms are doing this to stifle debate and dissent, as well as saving on costs.
AstraZeneca, Britain’s most valuable listed company, held its meeting in a broadcast suite at The Oval cricket ground in London. The invitation from chairman Michel Demare made clear that directors would only be dialling in from ‘a variety of locations’ and would ‘not be available to meet shareholders in person’.
When asked at the virtual meeting why there was no physical alternative, the firm claimed ‘the vast majority’ of shareholders’ supported the format, without providing evidence of this.
In favour?: Campaigners believe firms are holding digital AGMs to stifle debate and dissent, as well as saving on costs
‘It’s a brilliant way to avoid shareholder engagement,’ said Sheryl Cuisia of the Engagement Appeal pressure group. Annual meetings have seen some of the most dramatic moments in corporate history:
• In the 1970s and 1980s Barclays’ meeting was often disrupted by anti-apartheid protesters urging the bank to cut its financial ties with South Africa, which it eventually did;
• In 1995 a 20-stone pig called Cedric was paraded outside an unruly meeting of British Gas shareholders in protest at boss Cedric Brown’s pay;
• Tycoon Philip Green had to drop his bid for Marks & Spencer after 3,000 small shareholders backed the M&S board at its annual meeting in 2005.
Nationwide, which is owned by its 16 million members, was lambasted last year for not letting any speak in person to directors about its £2.9 billion takeover of Virgin Money.
‘Virtual-only is its new modus operandi,’ said James Sherwin-Smith, who is trying to join Nationwide’s board.
Haleon says its annual meeting will be virtual and ‘broadcast under studio conditions’ next month from its head office in London, adding that most shareholders are based outside of the UK.
Some companies have gone back to a hybrid format under pressure from shareholders.
Snout in the trough: In 1995 a 20-stone pig called Cedric was paraded outside an unruly meeting of British Gas shareholders in protest at boss Cedric Brown’s pay
M&S chairman Archie Norman had to climb down in 2023 after it was accused of ‘arrogance’ and setting ‘an appalling precedent’ when it told shareholders not to attend the meeting in person.
Some firms, such as water supplier United Utilities, have moved their meetings from city centres to out-of-town business parks. Others hold them in the summer or Christmas holidays.
AstraZeneca said a higher proportion of shares are represented in online meetings than in the previous in-person format, and its globally-based shareholders take part on equal terms.
Nationwide confirmed its meeting in July would again be online. The format had seen higher attendance and greater engagement, reversing a decline since 2011, it added.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
InvestEngine
InvestEngine
Account and trading fee-free ETF investing
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
