Shareholders under the aegis of the Proactive Shareholders Association of Nigeria (PROSAN) have called for an urgent review of the virtual Annual General Meeting (AGM) arrangement, insisting the current practice contradicts the Companies and Allied Matters Act (CAMA) stipulated rules and guidelines.

To avert the spread of COVID-19 virus, the recent guidelines released by the Corporate Affairs Commission (CAC) on proxy AGM stipulated that any investor who is not willing to attend the meeting could appoint a representative.

With over 111 shareholders’ associations in Nigeria, an investigation by THISDAY revealed that less than 10 association representatives have access to attend listed companies’ AGMs.

Ahead of the 2023 general election, President Muhammadu Buhari had relaxed restrictions put in place in the wake of the COVID-19 pandemic in 2020 and shareholders are calling for total suspension of virtual AGM.

Speaking with press, the National Coordinator of the shareholders’ group, Mr. Taiwo Oderinde insisted that what is obtainable as proxy AGM at the ongoing yearly meetings of listed firms contradicts the stipulated guidelines and does not address investors’ concerns.

He said the management of these listed companies are greedy and less concerned about shareholders’ investments, stressing that if the decision persists, shareholders may protest in Abuja and Lagos.

He said, “The management of these firms selected few shareholders and stop other shareholders’ associations commenting on their financials. Out of 365 days, shareholders only have AGM to make comments about their performances and speak on how they can make amendments.”