By Chinwendu Obienyi
Amid concerns by shareholders over continued virtual and proxies’ for Annual General Meetings (AGMs), the Corporate Affairs Commission (CAC) has stated that the use of proxies by public companies will cease to apply effective from December 31, 2022.
The Registrar-General, CAC, Alhaji Garba Abubakar, disclosed this during a one-day stakeholder’s interactive dialogue organised by the ISAN Universal Academy, the educational arm of the Independent Shareholders Association of Nigeria (ISAN) with the theme: “CAC Guidelines on Proxies AGMs of Public Companies Post COVID-19: Matters Arising which held in Lagos at the weekend.
Shareholders had previously queried the continuance of the proxy policy despite the fact that the COVID-19 pandemic had reduced handling cost to the barest minimum.
However, Abubakar said that the guidelines would cease to apply after December 31, 2022, adding that a public notice to that effect was issued on November 21, 2022.
Abubakar who was represented by Assistant Director, Registry Department at CAC, Tolu Sonaike, said all public companies that have been granted approval to hold their AGMs using proxies are expected to do so not later than the specified date.
Abubakar recalled that the guidelines on use of proxies by public companies in holding AGMs were issued to address the particular concerns during the COVID-19 pandemic and facilitate compliance by these companies with statutory obligations.
He then urged public companies to comply with the new directive.
“Notwithstanding whatever benefits holding AGMs by proxies may have afforded the companies, the option is at the instance of individual members of the company and may not be foisted on any member,” he said.
The Registrar-General commended ISAN for being a proactive association committed to the interest of its members and the economy at large.
Also speaking at the interactive session, the Coordinator Emeritus and Chairman of ISAN Universal Academy, Sir Sunny Nwosu, said that the association would continue to engage with market regulators for the development of the market and economy in general.
Nwosu said that ISAN would continue to set standards for other shareholder groups in the country while adding that the dialogue aims at retooling the new normal.
He argued that since the CAC’s guideline on virtual and proxies AGMs was applauded, minority shareholders have expressed mixed feelings, claiming infringement on their fundamental rights as shareholders.