We have gathered and examined data from AGM Notices published by FTSE 350 companies since January 2024. We have set out the approach companies have taken on a number of key aspects of their meetings, including where the meetings are being held, the arrangements made for Q&As and the varying levels of shareholder engagement being offered. We have also identified the categories of resolutions that received 20% or more dissenting votes at AGMs last year and show the trend this year to date.
Key trends
- So far this AGM season, 60% of FTSE 350 companies who have issued their AGM notices have opted for an entirely physical meeting without any form of electronic engagement. Hybrid meetings were the next most common form (22%). Fully virtual meetings were rare, with only 1 company (TUI AG) choosing to adopt such, just as they did in 2023.
- However, there is a new trend for ‘digitally-enabled AGMs’ held under ‘studio conditions’ (e.g. AstraZeneca plc, Rolls-Royce Holdings plc), where meetings are held at a physical place, but shareholders are strongly ‘advised to’ attend remotely.
- Most FTSE 350 companies (82%) have permitted shareholders to ask questions in advance of the AGM (by email, post, website and/or the relevant online platform), citing the desire to facilitate more smooth and efficient meetings as the key rationale for doing so.
- There are 2 environmental resolutions to be tabled at AGMs this May, both of which are advisory. The shareholders of Unilever plc are due to vote on approving the company’s updated Climate Transition Action Plan, whilst the shareholders of Aviva plc will vote to approve the company’s climate-related Financial Disclosures for 2023.
- In line with our previous predictions, an increasing proportion of companies (49%, as of April 2024) are taking advantage of the additional flexibility set out by the 2022 Pre-Emption Group guidelines to some extent (compared to only 41% of FTSE 350 companies who issued their AGM notices between November 2022 and the end of November 2023):
- 39% of FTSE 350 companies have adopted the 10% + 10% thresholds for disapplication of pre-emption rights and authority for related follow-on offers; and
- an additional 10% have adopted the 10% + 10% thresholds only, but have decided not to take authority for related follow-on offers.
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This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.
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