With the close of the financial year, planning for Annual General Meetings will soon be underway. With the heightened focus in the community on corporate governance, CSA is interested in finding out how members prepare for their AGM’s, who do they use to assist them and whether or not the AGM is still an effective method of communication.

1. Do you use investor relations or public relations consultants to assist you in preparing for your company’s AGM?

Yes 42%
No 58%

If yes, in what capacity?

– assist in identifying issues
– arrange press releases and coverage
– assist Chairman

2. Do you meet with shareholder groups and/or corporate governance monitor groups before your company’s AGM?

Yes 58%
No 42%

The overwhelming majority of ‘yes’ responses identified the Australian Shareholders Association.

If yes, how do you use the information you learn from these meetings?

– identify issues to be addressed
– try to respond to issues before the meeting
– may determine extent or manner of presentation of information to be provided
– assist with preparing Chairman’s address or response

3. Who within your company prepares for the AGM? (eg CEO, Chairman, Company Secretary)

Company Secretary    100%
Chairman                   77%
CEO/MD                     81%
CFO                           42%
Inv. Relations/PR        69%

4. Does the full board become involved in planning for the AGM?

Yes 31%
No 69%

5. Is the AGM still an effective mechanism for a company to communicate with shareholders?

Yes 88%
No 12%

Many of those that replied ‘yes’ also said that it was only one of many ways that a company needs to use to communicate effectively.

If not, what other ways do you think a company could achieve the same communication objective? (NOTE: this sub-question was answered by many that answered ‘yes’ to this question).

– Websites and web casts
– continuous disclosure
– press releases and ASX announcements

Tim Sheehy
CHIEF EXECUTIVE