Amid shareholder demands for greater engagement, Internet-based annual meetings may enhance accessibility and save costs. Registered participants can follow presentations, ask questions, and exercise real-time voting. But virtual shareholder meetings may pose “greater risks of surprises,” especially on contentious issues, since shareholders may be less deferential while sitting shrouded at their home or office, says Morrison & Foerster partner Brandon Parris. That’s why the design of these meetings is critical, adds Morrison & Foerster partner David Lynn, co-chair of Morrison & Foerster’s Public Companies and Securities Practice. Management must balance its impulse to retain control of the meeting with the need to permit an appropriate level of interactivity.
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