New timeline for firms to tackle shareholders' queries before voting

Firms to post answers on SGXNet 48 to 72 hours before deadline to submit proxy votes

Singapore Exchange Regulation (SGX RegCo) will be prescribing additional timelines to require companies to answer shareholders’ queries before the deadline for shareholders to submit proxy votes, said chief executive Tan Boon Gin.

The front-line regulator will also make it a requirement for companies to hold a virtual information session (VIS) – where the board or management can take live questions from shareholders – for certain corporate actions.

Speaking at a keynote address at the Chartered Secretaries Institute of Singapore 2021 Conference on Tuesday, Mr Tan said: “With another round of virtual general meetings looking likely, we are going to have to tackle... feedback we have been receiving, which is that shareholders are not getting the chance to ask questions before they vote.”

He noted that emergency legislation introduced last year enabled companies to hold virtual general meetings, and also enabled live question and answer sessions and live voting, even though they are not a requirement.

SGX RegCo and the Monetary Authority of Singapore also published a joint statement subsequently encouraging live voting and Q&A sessions at general meetings, without making them mandatory.