Do You Know the Hidden Rules of Singapore Annual General Meeting? These Key Points You Must Know

Do You Know the Hidden Rules of Annual General Meetings in Singapore? Unveiling the Secrets and Key Considerations

In Singapore, listed companies hold an Annual General Meeting AGM every year, which is a crucial part of corporate governance. For investors, shareholders, and company managers, the AGM is not just a routine meeting but also an opportunity to understand the company's operations, participate in decision-making, and express opinions. However, behind this seemingly transparent process, there are some hidden rules or matters to be aware of, especially regarding shareholder rights, information transparency, and meeting arrangements.

I. Basic Process and Role of the Annual General Meeting

According to the Monetary Authority of Singapore MAS, all companies listed on the Singapore Exchange SGX must hold at least one AGM annually. The main purpose of the AGM is to inform shareholders about the company’s financial status, management performance, future strategies, and progress on major issues. Shareholders can also vote on key matters such as the appointment of board members, dividend policies, and the selection of auditors. In recent years, with the global emphasis on transparency for listed companies, Singapore has continuously strengthened its regulations. For example, the 2025 Company Law amendment further enhanced shareholder rights and corporate governance structures.

II. Hidden Rules and Common Issues

Although the AGM is a legal procedure, some companies may have certain hidden rules in practice. These behaviors, while not illegal, may affect shareholders' right to information and participation.

1. Improper Meeting Scheduling

Some companies choose to hold AGMs on holidays or in the afternoon of weekdays, making it difficult for shareholders to attend. For example, in June 2025, a large technology company listed on the Singapore stock exchange scheduled its AGM at 3 p.m. on a Friday, causing dissatisfaction among small shareholders who felt it was inconvenient for their participation.

2. Insufficient Information Disclosure

Although the law requires companies to disclose meeting agendas and related documents in advance, some companies still face issues with delayed or unclear information. In early 2025, media reported that a real estate company only announced its AGM two days in advance and did not provide detailed information on the dividend plan, preventing some shareholders from making timely investment decisions.

3. Lack of Transparency in Voting Mechanisms

Some companies use electronic voting systems but fail to provide clear instructions or technical support, making it difficult for some shareholders, especially the elderly, to effectively exercise their voting rights. In 2025, a bank faced regulatory attention after a voting system failure prevented hundreds of shareholders from casting their votes normally.

III. How to Deal with These Hidden Rules?

To better protect their rights, shareholders and investors can take the following measures

1. Pay Attention to Company Announcements in Advance

Shareholders should regularly check company announcements, especially those related to AGM notices, agendas, and financial reports. For example, in April 2025, a pharmaceutical company released its AGM notice a month in advance and included a detailed financial summary, helping shareholders prepare better for the meeting.

2. Use Online Channels to Participate

In recent years, more companies have allowed shareholders to participate in AGMs through video conferences or online voting. In 2025, the Monetary Authority of Singapore encouraged listed companies to adopt digital methods to enhance shareholder participation, with some even offering live QA sessions to improve interaction.

3. Actively Raise Questions

At the AGM, shareholders have the right to raise questions about the company's operations and financial performance. In May 2025, several shareholders asked a retail company about supply chain management during the AGM, and the management provided on-site responses, demonstrating a good communication mechanism.

4. Pay Attention to Shareholder Rights Protection Mechanisms

Singapore has a Shareholders’ Rights Committee, which handles shareholder complaints and suggestions. If a shareholder believes their rights have been violated, they can seek help through this organization.

IV. Recent News and Trends

In June 2025, the Singapore Exchange announced stricter supervision of AGMs for listed companies, requiring all companies to publish the full agenda at least 28 days before the meeting and ensure shareholders can easily access relevant information. This move aims to improve transparency and protect shareholder rights. With the growing awareness of ESG Environmental, Social, and Governance principles, more shareholders are paying attention to companies’ performance in sustainability. In 2025, several companies showcased their progress in carbon reduction, social responsibility, and corporate governance at AGMs, showing that ESG has become a key topic for shareholders.

V. Conclusion

The Annual General Meeting in Singapore is an important part of corporate governance and a key platform for shareholders to participate in company decisions. Although there are some hidden rules or shortcomings in practice, with increased regulatory oversight and rising shareholder awareness, more companies are moving toward greater transparency and openness. As investors, understanding these potential issues and taking appropriate measures will help better protect their interests and promote healthy business development.