Several of Canada’s biggest banks and insurance companies have announced that they have obtained a court order allowing them to hold annual meetings virtually or in hybrid mode next year.
The announcement was made in a joint statement, with insurance giants Canada Life, Great-West Lifeco, Manulife, and Sun Life, and major banks Bank of Montreal (BMO), Canadian Imperial Bank of Commerce (CIBC), Canadian Western Bank, Laurentian Bank, National Bank, Royal Bank of Canada (RBC), Scotiabank, and Toronto-Dominion Bank Group (TD Bank) as signatories.
The court order follows similar ones obtained by the companies in March 2020 and December 2020. The firms added that the orders were obtained because current rules prohibit them from hosting electronic annual meetings in lieu of an in-person meeting without a court order.
“Although we may be able to resume in-person annual meetings in 2022 with the appropriate health and safety protocols in place, we have been carefully considering alternatives for our respective meetings in light of the continued and unpredictable circumstances of the COVID-19 pandemic, public health restrictions, and potential protocols recommended by public health authorities and organizations,” they said in the joint statement.
“The order permits our meetings to be conducted over one or more of webcasting, teleconference, or other electronic means, in each case in addition to, or instead of, an in-person meeting, and permits alternative means for distributing meeting materials,” the statement continued.
The banks and insurance providers added that they are considering ways to improve how the annual meetings are held based on their experience in 2020 and 2021, and that specific arrangements for each meeting will be announced separately.
“We believe these are prudent measures to protect the health and well-being of our stakeholders, while supporting shareholder and policyholder engagement and their ability to attend and exercise their rights,” the companies said. “Each institution is committed to presenting their respective meeting in a manner that supports constructive shareholder engagement.”
Some groups, however, have expressed concerns on how these virtual meetings would be run.
The Shareholder Association for Research & Education (SHARE) – a not-for-profit organization focused on responsible investment services – told The Canadian Press that while the format could improve participation, “too often that hasn’t happened as companies limit or screen questions, or not allow them at all.”
“Some have used this virtual format as a way to limit participation, rather than to expand it,” said Kevin Thomas, chief executive officer of SHARE, adding that while “the financial industry hasn’t done a terrible job,” there are ample opportunities to improve shareholder participation.
Thomas said that these annual meetings should allow shareholders to not only communicate with the board, but with each other by hearing the questions being asked.
