Companies: Online AGMs

Baroness Bottomley of Nettlestone Excerpts

Monday 23rd March 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

The noble Lord sets out the rationale for why this will form part of the modernising corporate governance consultation. It will be in the hands of the shareholders and the businesses to decide. In fact, 85% of OECD Factbook countries, including the US, Germany and Japan, already allow virtual AGMs. So this is a proposal to bring the UK into line with other comparable countries, and to clarify the legal situation.

[Baroness Bottomley of Nettlestone (Con)]

The AGM is a more than convenient opportunity for shareholders in this sector to express their views. Of course, they all wish that the awkward squad would stay at home, as we do in this place, but we have to put up with the awkward squad—and my noble friend is very effective at that. The Minister will know that ShareAction provides evidence that online-only meetings allow boards to

“manipulate the agenda, ignore questions and avoid scrutiny”.

Investor groups describe in-person shareholder interactions as the “cornerstone” of the financial system. Even the FRC says that the AGM provides shareholders with the opportunity to see the whites of the directors’ eyes. From my point of view, it would be a great error to discontinue face-to-face meetings. We know it in politics, we know it in charity, and it is the same in business—even if only one person shows up to your board.

[Baroness Lloyd of Effra (Lab)]

We are putting this forward in the modernising corporate reporting consultation to clarify the legal situation for fully virtual AGMs, as I mentioned, to bring the certainty into line with other international jurisdictions. We are engaging with investors on what those shareholder rights and safeguards might look like, so that if shareholders and businesses want to move to fully virtual AGMs, we will know what they might be. Examples could include five-year shareholder votes or best practice or guidance of that kind.