KUALA LUMPUR (Aug 30): Public listed companies (PLCs) will no longer be allowed to hold virtual-only general meetings beginning March 1, 2025, Bursa Malaysia and the Securities Commission (SC) said on Friday.

All PLCs must then hold hybrid or physical general meetings, the regulators said in a joint statement. The requirement applies to all general meetings of companies on the Main Market and ACE Market with more details to be provided in due course.

“Shareholder meetings, especially AGMs (annual general meetings), are important sessions to engage the board and management,” said SC chairman Datuk Mohammad Faiz Azmi. “Domestic and international investors have also expressed their preference for hybrid or physical meetings.”

The palm oil industry has come a long way from the introduction of the plant to the country as an ornamental crop to a complex global powerhouse, contributing significantly to Malaysia’s gross domestic product and the creation of job opportunities. While this pursuit of economic prosperity remains essential, a growing awareness of the industry’s far-reaching social and environmental implications has ignited a shift towards sustainable and responsible practices. Today, the palm oil sector operates within a complex and dynamic environment shaped by converging pressures. Escalating consumer expectations for ethical and sustainable products, coupled with increasingly stringent government regulations and rapid technological advancements, have transformed the industry landscape. With 5.65 million hectares across the country dedicated to the cultivation of the crop, the sector’s impact on local communities, small-scale farmers, indigenous groups and workers is profound and far-reaching.

The requirement comes after the SC found that more than half of the PLCs continued to hold fully virtual AGMs in the first half of this year even though the Covid-19 pandemic has officially ended.

Bursa Malaysia fully supports the hybrid approach as it strikes the right balance between accessibility and engagement, said its chief executive officer Datuk Muhamad Umar Swift said in the same statement.

Physical meetings preserve shareholder rights and ensure no one is excluded due to technological barriers, he stressed.

“While virtual participation enhances accessibility, PLCs should strive to hold general meetings in a hybrid model or at least in a physical format,” Umar said. “This ensures meaningful shareholder engagement, safeguards shareholder rights, and upholds the integrity of the general meeting process.” 

https://www.theedgemarkets.com/node/724984