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Exercising corporate governance at the annual general meeting

Exercising corporate governance at the annual general meeting Purpose – Annual general meetings (AGMs) are an essential aspect of corporate governance in the UK, although there is little attempt to monitor the process of accountability evident on the part of the directors. This paper aims to provide an analysis of AGMs and suggest ways of making the event more effective from a stakeholder viewpoint. Design/methodology/approach – By referring to the original principles of corporate governance laid down by the Cadbury Report onwards, past observation and evaluation have been used to pick out the best and worst practices of over 40 AGMs attended in order to build up a picture of a successful AGM for shareholders and directors alike. Companies are assessed for aspects of best practice relating to their AGMs and the essential elements are discussed. Findings – A successful AGM should include: a well balanced and independent range of skills and backgrounds on the board, accompanied by fair remuneration and reward schemes for the directors; awareness of long‐term social, community and environmental issues incorporated in corporate social responsibility, alongside the more immediate matters of financial performance; and a real appreciation of the concerns of all stakeholders. Originality/value – The paper suggests how an AGM might be run to achieve optimal benefit for the parties involved, and is aimed mainly at boards of directors and event organizers to ensure awareness of the key issues. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Corporate Governance Emerald Publishing

Exercising corporate governance at the annual general meeting

Nicholas Apostolides
Corporate Governance , Volume 10 (2): 10 – Apr 13, 2010
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Publisher
Emerald Publishing
Copyright
Copyright © 2010 Emerald Group Publishing Limited. All rights reserved.
ISSN
1472-0701
DOI
10.1108/14720701011035666
Publisher site
See Article on Publisher Site

Abstract

Purpose – Annual general meetings (AGMs) are an essential aspect of corporate governance in the UK, although there is little attempt to monitor the process of accountability evident on the part of the directors. This paper aims to provide an analysis of AGMs and suggest ways of making the event more effective from a stakeholder viewpoint. Design/methodology/approach – By referring to the original principles of corporate governance laid down by the Cadbury Report onwards, past observation and evaluation have been used to pick out the best and worst practices of over 40 AGMs attended in order to build up a picture of a successful AGM for shareholders and directors alike. Companies are assessed for aspects of best practice relating to their AGMs and the essential elements are discussed. Findings – A successful AGM should include: a well balanced and independent range of skills and backgrounds on the board, accompanied by fair remuneration and reward schemes for the directors; awareness of long‐term social, community and environmental issues incorporated in corporate social responsibility, alongside the more immediate matters of financial performance; and a real appreciation of the concerns of all stakeholders. Originality/value – The paper suggests how an AGM might be run to achieve optimal benefit for the parties involved, and is aimed mainly at boards of directors and event organizers to ensure awareness of the key issues.

Journal

Corporate Governance – Emerald Publishing

Published: Apr 13, 2010

Keywords: Annual general meetings; Corporate governance; Stakeholder analysis

References

  • Directors v. shareholders: ‘evaluating corporate governance in the UK using the AGM scorecard’
    Apostolides, N.
  • Cedric the pig: annual general meetings and corporate governance in the UK
    Apostolides, N.; Boden, R.
  • The Financial Aspects of Corporate Governance
    (The) Cadbury Report