New Zealand Shareholders Association says there are a number of factors which have contributed to falling attendance. (file image) Photo: 123RF
There is concern about shareholder engagement after new research has revealed a sharp fall in attendance at shareholder meetings.
A New Zealand Shareholders Association (NZSA) survey showed the overall average attendance for meetings fell 24 percent since 2019.
It said falling attendance had not been offset by an increase in virtual attendance.
Hybrid meetings, where shareholders can join in person and virtually, have become more common since the Covid-19 pandemic.
NZSA chief executive Oliver Mander said a shareholder meeting remained "a key interaction between a company and its shareholders".
"For investors, it's always important to be represented - even if you've outsourced your investment decision-making to a [discretionary investment management service] provider, it's important to be an informed customer," he said.
Mander said there were a number of factors which had contributed to falling attendance.
"Part of it is you've seen an increase in how investors choose to make their investments [by outsourcing investment decisions]," Mander said.
"Another part of the reason actually is that the corporate governance standards in New Zealand have improved over the past two decades. There's arguably more trust in the corporate environment than there has been in the past."
But he said engagement remained important both for companies and shareholders.
"For issuers, we think it's important that the shareholder meeting is regarded as a 'good cost' - a cost that shareholders are willing to bear to provide assurance and representation."