New technologies for new engagement: benefits on offer are greater opportunities for shareholders to participate in the annual meeting, higher levels of voting participation, more transparency, and lower costs.

• Author: Daly, Richard J.
• Position: ANNUAL MEETINGS

ANNUAL SHAREHOLDER MEETINGS are changing for the better, and when it comes to technology and progress it's safe to say there's no going back.

Vast shifts in technology--including online forums, social media, sentiment gathering, and other developments--are enabling annual shareholder meetings to evolve with a rapidly changing world. Certain technologies are creating opportunities for directors to more regularly, efficiently, and broadly understand the views of all of their shareholders, and are affording shareholders levels of transparency, participation, and privacy not previously seen. These technologies can create efficient outreach throughout the year, as well as annually at shareholder meetings and, ultimately, we believe, contribute to improved levels of knowledge and, therefore, trust in equity markets.

If asked to imagine a shareholder meeting, some people might paint a heartland scene--a sports arena filled to the brim with adoring shareholders sipping cherry sodas. Others might describe a more dramatic scene: an issues group hijacks the Q&A session and security guards spring to attention. The reality, of course, for the vast majority of annual meetings is far different.

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Most meetings are sparsely attended. Shareholders would like to be more involved but attending in person can be time-consuming, expensive, and inconvenient. As a result, many companies hold their annual meetings in a small conference room and provide only such bare essentials as coffee, donuts and copies of the proxy statement and annual financial statement for the few shareholders who are able to attend in person. Yet, a company's preparations for the meeting, including board travel, security and other arrangements, can be costly and time-consuming whether one or more people attend.

Game-changing technology

Internet webcasts of meetings are, of course, not new, but until recently there was no easy way to assure that questions submitted by participants or votes cast online in real time were, in fact, from actual, validated shareholders of the company. In 2009, Broadridge Financial Solutions unveiled technologies for "Virtual Shareholder Meetings" and "Electronic Shareholder Forums." Although relatively new, these technologies are changing meetings for the better. Among other benefits are greater opportunities for shareholders to participate and lower costs to companies, shareholders and boards. Early results show increases in engagement and information flow.

The Virtual Shareholder Meeting technology provides a...