Telematic Shareholders' Meetings, the remote solution

The telematic holding of Ordinary Meetings of Shareholders is a clear example of this favourable acceleration of technology in these times of confinement. The legal obligation to hold meetings not in person or in the following phases only allows limited attendance at them, which causes participation in the Shareholders' Meetings to suffer considerably.

There are two important reasons why it is in a company's interest to increase its participation in its Shareholders' Meeting:

• A high level of participation in the deliberation and approval of agenda items presented to the board undoubtedly strengthens the organizations, enriches the collective vision and gives its representatives the necessary support.
• The need for a reinforced Quorum of more than 50% of the share capital at first call or 25% at second call in order for certain items on the agenda, such as amendments to the bylaws, to be approved. 

For a shareholder to be able to participate in the Shareholders' Meeting, cards are sent to her home through the bank where she has her shares deposited and/or through the entity of which she is a shareholder. These cards allow her to attend the meeting, delegate her vote or vote. The attendance card allows her to physically attend the meeting. To be able to participate with the proxy or voting cards, she would have to send the card to the company either through her bank or directly to the company's address, where it would be recorded.

As we can see, this form of participation, which is the majority at present, is greatly reduced by the mobility restriction we are suffering from. Therefore, it is very important to promote electronic participation at a distance, which allows shareholders to participate without leaving their homes.

The following systems are available for the remote participation of shareholders:

Prior to the start of the meeting

Remote Electronic Voting and Delegation:

• Vote electronically on agenda items prior to the meeting.
• Delegate their shares to the Board of Directors or third parties.

This service is equivalent to sending the remote voting or proxy card on paper without having to go to the bank or post office.

During the meeting

Telematic Assistance:

• Vote electronically on agenda items during the meeting.
• Attach or write her intervention to be read and/or answered by the company at the same meeting or later.

This service would be equivalent to the physical attendance of the shareholder at the meeting.

In addition to these systems, it is necessary to correctly identify the remote participants in the meeting. The main methods available to enable a shareholder to participate electronically are the electronic ID card or the certificate from the FNMT in Spain (National Factory for Coin and Stamps for its initials in Spanish), which is subsequently checked against the company's census of shareholders and the delegations received.

Culturally, we are overcoming resistance to participating remotely in meetings of friends or in professional meetings and that same experience is being extended to greater remote participation in Shareholders' Meetings, obtaining great advantages for both the company and the shareholder herself:

• Avoiding the risk of contagion of the disease (COVID-19).
• Promote potential participation (attendance and secure voting from home).
• Save money (expenses of the social act) and time (no trips).
• Transmit an image of modernity and technological adaptation of the Organization.