- Shareholders want the chance to confront the board face-to-face
- M&S said digital AGMs are more accessible and engaging
Marks and Spencer (MKS) shareholders have piled pressure on the company to rethink the format of its annual general meeting, which have been held exclusively online since the Covid-19 pandemic.
This year’s AGM notice asked shareholders not to turn up at the venue, adding that board members would not be available to interact with them in person. But during the meeting, held on 4 July, it was revealed that many shareholders submitted questions to the board questioning the practice, and that some still travelled to the venue and were admitted into the room.
Shareholders could submit questions to the board in advance or live, which were put to the board by broadcaster Anita Anand. A question submitted by campaigning organisation ShareSoc’s Cliff Weight accused the company’s chair Archie Norman of “going too far, too fast” in making the AGM fully digital.
M&S held its first hybrid AGM in 2019 and later moved to online-only meetings. The company said it believes the digital format is the best for reaching as many shareholders as possible, making the meeting more accessible.
“We have heard the feedback and we are thinking about it,” Norman said at the AGM. “Our objective is to have the biggest shareholder AGM in the country.” Attendance to M&S AGMs has increased significantly compared to when the meeting was in-person only, he added.
But he admitted that the shareholders’ request to be able to question the board in person is not unreasonable and that the board will “have to think about that”.
Private investor Lord John Lee, the UK's first Isa millionaire, said that while hybrid AGMs are the way forward, M&S’ approach “creates an appalling precedent”.
“The opportunity to talk with directors is important and special. Surely it’s not asking too much for directors to spend an extra hour or two once a year. How arrogant can you get?,” he said.
Earlier this year, M&S launched a campaign calling for better communication between companies and retail investors and for digital and hybrid AGMs to be recognised by law. The campaign is backed by various organisations in the sector including ShareSoc.
The company also worked with investment platform interactive investor to connect with nominee shareholders and encourage them to vote at its AGM. Nominee shareholders are not always notified by platforms when a company in which they hold shares is holding an AGM or a vote and need to obtain a letter of representation to take part in AGMs.
