Is the online medium of corporate voting essential?
In order to decide the method of conducting an annual meeting, a company should consider its own shareholder’s needs. There is a need of an online medium of voting that should be a supplement and that should not replace the physical meetings. In the process of recommending the best practices for online meetings, various policies regarding online shareholder meetings. Corporate Voting App would act beneficially in that respect as that would help the members to participate in the voting process without any hassle.
Nowadays, a majority of companies are holding shareholder meetings remotely which is termed as virtual meetings but these meetings are only as a supplement to in-person corporate meetings, they are not as a substitute.
The voting app is used as a tool by companies that have incorporated virtual technology for broadening the meeting participants. The virtual option is used for facilitating the opportunity for remote attendees to participate in the meeting and become part of the decision undertaken in that meeting.
Online conduction of meetings and participation of the shareholder in the meetings provide an opportunity to improve corporate governance. The shareholders are able to participate in the meetings regardless of the location. This process of voting even aids in increasing communications among shareholders, management, and directors. Here are some more benefits of incorporating a corporate voting app:
- Such a voting process helps in emerging and social technologies and reaches shareholders irrespective of their location. Therefore, the company has the benefit to collect the opinion of all shareholders even when there are unable to visit physically.
- There might be some shareholders who are not able to attend a meeting in person but they have the opportunity to access and participate in the annual meeting process only when the meeting is conducted virtually.
- An initiative of conducting the elections remotely even helps the company to have potential cost savings and ultimately it is beneficial for the shareholders too as they can also earn more dividend when expenses are less.
The company has set to some principles for the online meeting through the voting app and then convey those principles to the shareholders in a reasonable advance time. So that after receiving the information shareholders confirm their participation in the online meeting.
After that shareholders can vote remotely using the app. They have to ensure that they first register successfully before starting the process. In the process of voting, there must be proper procedures to record the votes properly.
The companies should adopt the best practices, for ensuring online participation in shareholder meetings which provide the same opportunity for dialogue between the shareholders, directors, and management as it was at the in-person meeting.
Corporate voting app accomplishes this purpose. The only challenge that the companies have to face is that it has to establish guidelines for questioning the shareholders who intend to participate in the shareholder meeting.
In that process, the company has to keep various specific considerations in mind before framing the guidelines. This would provide benefits not only to the company but also to the shareholders themselves.
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