Companies in Nigeria are now to hold their meetings with provision for full physical attendance by shareholders and stakeholders as a guideline that allows companies to hold meetings mainly through the use of proxies expired on December 31, 2022.
The Corporate Affairs Commission (CAC) said the guideline, which was introduced in the wake of the COVID-19 pandemic, ceased to apply effective January 1, 2023.
Registrars-General (RG), Corporate Affairs Commission (CAC), Alhaji Garba Abubakar, said all public companies that have been granted approval to hold their annual general meetings (AGMs) using proxies were expected to have done so not later than December 31, 2022.
He said a public notice to this effect had been, noting that the guideline on use of proxies by public companies in holding AGMs was issued to address the particular concerns during the COVID-19 pandemic and facilitate compliance by these companies with statutory obligations.
He noted that the compelling circumstances of the pandemic which necessitated the guideline had ceased to exist.
Abubakar urged public companies to ensure compliance to the new directive.
“Notwithstanding whatever benefits holding AGMs by proxies may have afforded the companies, the option is at the instance of individual members of the company and may not be foisted on any member,” Abubakar, said.
Abubakar spoke at a one-day stakeholder’s interactive dialogue with the theme: “CAC Guidelines on Proxies AGMS of Public Companies Post Covid-19: Matters Arising. He was represented at the event by an Assistant Director, Mr Tolu Sonaike.
Chairman, ISAN Universal Academy, Sir Sunny Nwosu, said the dialogue was aimed at reviewing the new normal enthroned worldwide in 2020 through the global health challenge known as Corona virus or COVID-19.
“COVID-19 ushered in public health uncertainties that disrupted international economic order. The pandemic which touched all sectors of the economy led to a new normal that metamorphosed into remote operations.
“As the new normal evolved in response to COVID-19, the pandemic accelerated the mandate for digital revolution, as many companies embraced and adjusted to the use of remote technology,” Nwosu said.
Company Secretary, Julius Berger Plc, Mrs Cecilia Madueke said that AGMs by proxies introduced by the CAC due to COVID-19 had been helpful to public companies.
Madueke described AGMs by proxies as a product of necessity, noting that Nigeria would have been left behind by the global economies due to COVID-19.
She commended the CAC for stopping the initiative saying that it was no longer relevant.
President, Institute of Capital Market Registrars (ICMR), Mr Seyi Owoturo, said that AGMs by proxies was introduced by CAC to address physical distancing for a maximum of people as ordered by the federal government.
Owoturo represented by Mrs Cathrine Nwosu, Second Vice Chairman, ICMR, said that the guideline was very useful during COVID-19 which made it possible for public companies to hold AGMs like other countries of the world.
