German government plans to allow virtual general meetings even after the pandemic

Will virtual be the "new normal"? The new German government's draft bill indicates that annual shareholder meetings may also be held virtually in future.

According to the German government's new plans, the annual shareholders' meetings of listed companies can be held virtually even after the Covid-19 pandemic. This is indicated by a draft bill on the "virtual annual general meeting" presented by the Federal Ministry of Justice on February 10, 2022.

Before the coronavirus pandemic, it was customary to hold all Annual General Meetings exclusively in person. However, the crisis has shown us that virtual AGMs work and that they even have some advantages, such as an increasing attendance rate at meetings, i.e. a higher proportion of the share capital was represented at the AGMs. A virtual annual general meeting also offers some advantages in terms of costs, as large corporations in particular no longer have to rent expensive exhibition and concert halls. 

Federal Minister of Justice Marcus Buschman sees the coronavirus-related temporary measure as a permanent option. Among other things, the draft bill deals with the right to speak for shareholders and the possibility of asking questions so that they can retain their usual rights in the context of virtual meetings and are not forced into a passive role. 

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Source: www.tagesschau.de/wirtschaft/finanzen