| Business Regulations, Law & Practice |    1981 VIEWS  |
| Business Regulations, Law & Practice | |
| 1981 VIEWS | |
 |
Wednesday, April 15, 2020 02:08 PM / by NSE / Header
Image Credit: NSE
Background
Meetings, whether of companies' Boards of Directors,
or of their Committees, or Management, are an essential aspect of the decision
making process in companies, with firm roots in good corporate governance.
Members' active participation at meetings is extremely important, and it is
desirable, asit provides attendees with the opportunity to make enquiries,
provide inputs and objective criticism, receive clarification, and be generally
more informed, to guide decision making. In a bid for companies to constantly
keep up with the ever changing business environment and globalization in
general, business meetings have been evolving from the conventional round table
physical meetings into virtual meetings. Most importantly, due to the
challenges and exigencies of doing business in recent times, especially with
the occurrence of the COVID19 pandemic, virtual/remote activities have
increasingly become a necessity without which many businesses may not attain
continuous operational efficiency. As such, virtual meetings have become
standard and are utilized by large and small-sized businesses, with participants/attendees
spanning different time zones, whilst interacting simultaneously and
seamlessly.
Objective
The
Nigerian Stock Exchange (The Exchange) notes the legal and regulatory
uncertainties that Nigerian businesses may face regarding convening virtual meetings,
particularly in the wake of current economic and social constraints
precipitated by the COVID-19 pandemic, which underscore the need for companies
to adopt a more practical style of holding meetings. This document, which is
one of The Exchange's Guidance and Thought Leadership series, seeks to provide
some guidance to the market and other stakeholders on carrying out successful,
productive, and rewarding virtual meetings. This Guidance addresses virtual
participation for the following meeting scenarios: i. Board, Committee, or
Management meetings/briefings that require on-line presentations; ii. Board,
Committee or Management meetings with some members physically present at the
meeting venue, and others participating virtually; and iii. Board, Committee,
or Management meetings where all Members are participating virtually.
Stakeholder Concerns
It is
noted that many stakeholders may be concerned that: (a) conducting meetings
through virtual participation alone could diminish the ability of the
participants to fully participate and have their questions and concerns heard,
without the risk of Management exerting excessive control; or (b) that if
virtual technology is used to replace physical or in-person meetings, the
opportunity for physical and direct engagements, and its attendant benefits,
including nonverbal cues, may be lost. Notwithstanding, The Exchange's position
is that upon seeking and receiving proper guidance, every company should decide
for itself the best way to conduct its meetings. Our purpose is to ensure that
when companies opt for virtual participation in meetings, such meetings are
conducted in an accessible, transparent, efficient, and cost-effective manner,
while meeting the important business and corporate governance needs of all
relevant stakeholders. Each company must consider its own objectives,
preferences, and costs, as well as its stakeholders' concerns in deciding
whether to convene and conduct virtual meetings.
Download Here - Guidance on Companies' Virtual
Board, Committee and Management Meetings
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