The Companies and Intellectual Property Commission (CIPC) has released Guideline 1 of 2024, which aims to guide companies in holding Annual General Meetings (AGMs) electronically. This update aims to make it easier for companies to conduct meetings in a digital format while ensuring all shareholders can participate effectively.

Applicable sections of the Companies Act No. 71 of 2008:

• Public companies must hold their AGMs within specific timelines and ensure they are accessible to all shareholders (Section 61(7) of the Companies Act 71 of 2008).

• Companies can hold their meetings entirely online, provided all participants can effectively communicate with one another (Section 63(2) of the Companies Act).

• Shareholders must be able to participate and interact without needing an intermediary (Section 61(10) of the Companies Act).

Key considerations when holding AGM electronically:

• A combination of written, verbal, and video communication should enhance participation.

• A detailed agenda should be provided at the start of the meeting so shareholders know when they can ask questions.

• Shareholders should be able to see who else is attending the AGM online and interact with each other.

• All board members and executive participants must be visible in real-time throughout the AGM.

For accountants advising companies, these new rules are crucial in helping businesses meet compliance requirements while taking advantage of digital solutions for AGMs.