Maybank had to postpone their AGM due to a technical glitch.
Malayan Banking Bhd and CIMB Group Holdings Bhd are the two biggest banks in Malaysia. Both scheduled to hold their annual general meeting virtually on Thursday, the 15th of April.
CIMB shareholders’ meeting went smoothly. However, Maybank had to shelve its 61st AGM at the eleventh hour due to “technical issues”.
This event is arguably the first online AGM postponement involving Malaysia’s corporate.
Maybank released a statement yesterday explaining the issue.
In the statement, Maybank said the deferment was due to technical issues faced by the remote participation and voting (RPV) facility provider, Tricor Investor and Issuing House Services Sdn Bhd.
Using the RPV facilities, shareholders can exercise their right to participate in the AGM. These rights include posting questions to the board and management of the company. As well as voting from the comfort of their home.
Due to the postponement, questions have been raised on the reliability of conducting AGMs online. The pandemic has pushed companies to conduct AGMs online.
RPV to blame
Meanwhile, Tricor said it had identified the root cause of the downtime. The reason has since been duly rectified as well as tested for its efficacy.
“(Tricor) would like to express its deepest apologies for the AGM postponement due to a technical issue. The inconvenience to our clients and business partners is deeply regretted. We are taking all steps to ensure that all our forthcoming virtual AGM’s proceed smoothly.
“Tricor Malaysia will continue to forge ahead as well as develop our capacity and capability to spearhead the digital transformation of Corporate Malaysia,” it said in a statement.
Change in AGM rules due to Covid
The Companies Act 2016 Section 340(2) requires public companies to hold their first AGM within six months from the date of its financial year-end and not later than 15 months from its last AGM.
But in light of the MCO, the SC and Bursa Malaysia had allowed flexibilities. Such flexibilities include deferring their AGMs beyond the prescribed six-month period.
It also relates to broadcast venue, persons to be physically present and social distancing guidelines during the MCO period only.
Only eight essential individuals can be physically present at the broadcast venue – chairperson of the general meeting, chief executive officer, chief financial officer, company secretary, auditor and those providing audio-visual support.
“However, the SC stressed that listed issuers should try to conduct the fully virtual meeting with a few individuals present at the venue as possible,” the SC said.