Just as anyone within a company — from the interns to C-suite managers — gets evaluated based on performance, members of the corporate board should also be assessed for their effectiveness as directors. Usually this assessment comes in the form of the shareholders of the company or organization. They are the ones that apply pressure on directors to perform better and stronger than ever. Shareholders demand not only good performance from the corporate board as a group, but also transparency in the individual actions of its directors.
Answering to Shareholders
Every year, a company will hold its annual general meeting (AGM), where the corporate board must be able to communicate and be transparent in the performance and future plans of the organization as per the agreed upon standards. For some companies, these standards come in the form of goals or objectives. But whatever they’re called, the purpose is the same: These standards set clear expectations on what directors need to be able to deliver.
This ensures that directors will get a fair evaluation for their performance by the shareholders. Setting achievable goals and holding directors to account is, after all, part of good corporate governance.
Virtual Solution for Boards and Shareholders
However, with the advent of the pandemic and numerous lockdowns in countries that prevent a large gathering of attendees, shareholders are unable to physically meet with directors to hold them to account.
Fortunately, most organizations have now shifted to the use of a type of virtual meeting solution that allows for these shareholders to meet and directly question the company’s directors despite government restrictions. They now hold virtual AGMs where shareholders can participate in company-wide shareholder meetings through remote, digital, and virtual means.
Using a virtual AGM platform makes the task of preparing for these meetings much easier. This type of platform readily allows organizations to hold meetings and invite its shareholders when it comes to the performance, election, and discussions related to the plans and strategies of board directors. Thus, the actions of a director can be more scrutinized and evaluated, achieving a level of transparency that is invaluable.
Trending Software Platform for Meetings
With this new platform available to organizations and shareholders, it has opened up the possibility of companies to still operate efficiently during this time of uncertainty. In addition, such a software platform can guarantee that shareholders will be able to continue speaking their minds during the company’s annual general meeting despite being unavailable to attend and meet directors physically.