10 Questions You Must Ask Before Investing in a Virtual AGM Platform [Checklist]
Before creating a full-blown AGM plan, it’s important to decide if you’re going to have the event virtually or in person.
However, investing in a virtual AGM platform is significantly a vital decision for most B2B organizations. So, to ensure that you have all those “important queries” in hand before moving ahead with your decision – we have created a list of 10 must-ask questions to get things straight for you before investing in any virtual AGM platform.
What is a Virtual AGM Platform?
A Virtual AGM platform is an e-meet platform where shareholders and organizations discuss important business results, question the board, vote on resolutions, and interact with fellow shareholders.
After the pandemic, organizations are allowed to conduct AGMs as long as they are conducted within the guidelines. There is no involvement in physical meetings and shareholders have the option to participate and vote virtually.
What should you include in an AGM speech?
It is essential to prove to your shareholders that the company fully understands its present, past, and future forecasted financial performance. The board is questioned about the costs, debt, human resources, finance, and other growth prospects.
The AGM platform must give comfort, show control, and build stock valuation. It is followed by a Question and answer session and AGM speech.
How is Virtual AGM different from Physical AGM?
- Virtual AGMs provide flexibility for all the company shareholders and location isn’t a concern as it is in physical AGM.
- There are various practical elements that you need to take into account when you decide on planning a virtual AGM. The elements are the company’s ability to go digital, the ability to conduct a live Q&A session, which virtual AGM platform to use, and so on.
- Before going ahead with the planning of a virtual AGM, you need to check if virtual AGMs are permitted and that your organization meets all the statutory obligations.
Pros & Con’s
Pro’s – Virtual AGM
- Virtual AGM platforms are highly accessible. Shareholders, board of directors, and other management members can participate virtually
- AGMs are highly flexible and can be conducted during events like pandemics.
- Large costs of traveling and other miscellaneous expenses are saved. Companies save a huge amount in the long run.
- There are major transparency issues with virtual AGM platforms. The discussions about company performance happening in AGMs are less transparent.
- Few shareholders might not be able to be a part of virtual AGMs as they might lack the equipment and knowledge to participate in an online meeting.
- Significant possibility of technology failure: Meetings may have to be canceled due to technological failures. A tech person would be necessary to be available at all times to minimize and keep a check on the technical aspect of the platform.
10 Must-ask Questions Before Investing in a Virtual AGM Platform
Every board member needs to have a clear idea about these questions and be prepared to answer them.
- What’s the current and past five years’ financial position of the company? Are there clear figures?
- How did the board achieve those figures?
- Has the board successfully managed to minimize the exchange rate fluctuations?
- Does the company plan to raise future working capital? And how will it raise it?
- How do you vote and ask questions on a Virtual AGM platform?
- How to attend an AGM as a non-voting shareholder?
- How can the company help if needed during an AGM meeting?
- Are there any underperforming assets or divisions that the shareholders must know about the company? Are they going to keep, sell or fix them?
- Are the previous year’s investment plans reviewed and has the financial, liquidity, debt, etc changed?
- What do the inventory levels and annual turnovers look like? Compare them with the industry average or competitors.
Virtual AGMs are here to grow and benefit the organizations and shareholders as a whole. They are becoming immensely popular after the pandemic. So, if you have been resistant to changing and adapting to virtual AGMs then this is your sign to think no more and go for it.
Investing in a Virtual AGM platform would be the best decision that you can make for your business. Reach out to a virtual event professional and plan your first virtual AGM.