Conoravirus: Half of FTSE 100 AGMs could be disrupted

Nearly half of FTSE 100 companies could see their shareholder meetings disrupted as a result of the spread of Covid-19, according to research from Linklaters.

FTSE 100 companies due to hold their annual general meetings in April or May could see “very low” turnout.

The law firm said that 41 of the largest UK-listed companies – due to hold their annual general meetings (AGMs) in April or May – could see “very low” turnout if the public is advised to avoid large gatherings or widescale travel restrictions are implemented.

Cases of Covid-19 in the UK are expected to peak in the coming months and it is a legal requirement for companies with a December year-end to hold their AGMs before July.

The outbreak will likely intensify the need to make critical business decisions, said Linklaters, while some firms are considering other technologies to give shareholders remote access to the AGM.

Corporate partner Lucy Fergusson said: “AGMs will normally be able to go ahead, even if many shareholders choose (or are forced) to stay away, as the quorum requirement for the AGM to be legally binding is very low for most UK companies.

“And whatever happens, shareholders won’t lose their right to vote as they can vote by proxy before the AGM takes place. Other arrangements which some companies are considering so that investors can be kept informed and have their say include live-streaming a webcast of the meeting and asking for questions to be submitted online.

“2020 could see much smaller gatherings and companies may want to consider other ways of communicating with shareholders.”