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On 6 October 2026, the Investment Association published updated guidance on the use of virtual elements in shareholder meetings (Guidance: Virtually enabled shareholder meetings). Following publication of Consultation: Modernising corporate reporting, in which the government seeks to clarify the law on virtual AGMs (see FC Feature 7 September 2026), the guidance sets out IA member views on virtual-only meetings and includes a series of safeguards that companies are expected to follow where a virtual element is used (IA Press Release). The guidance will apply to AGMs of companies with year ends on or after 30 September 2026.
Hybrid AGMs
The guidance indicates that if companies choose to include a virtual element in their AGM, IA members prefer a hybrid format which combines a physical meeting with the option for virtual participation. Hybrid AGMs are seen as the best option for supporting accountability, inclusivity and interactivity between companies and their owners, while also allowing broader participation from both institutional and retail investors in the UK and overseas.
In particular, the guidance emphasises the following benefits of hybrid AGMs:
- institutional and retail shareholders can physically attend, be seen and heard at the AGM (a physical shareholder meeting is seen as particularly important for retail shareholders who typically have less frequent opportunities to engage directly with the board or other shareholders); and
- investors retain the full range of shareholder rights, including the ability to ask questions in real time, observe board interactions and assess their reactions.
Shareholder safeguards for virtual AGMs
The IA reports that its members have experienced challenges in jurisdictions where virtual-only AGMs have been introduced, such as limited opportunities for shareholders to be seen and heard, restrictions on live questioning, lack of transparency around question handling, and technological barriers to participation.
The updated guidance therefore sets out a series of safeguards that companies are expected to follow where a virtual element is used. These include the following:
- the chosen AGM format should allow shareholders to be seen and heard by the board of directors and other shareholders in real-time;
- all members of the board should participate and be clearly visible on-screen throughout the virtual meeting;
- all shareholders should have the right to ask questions of the board during the meeting, and the company should provide transparency around question handling; and
- a full record of shareholder submitted questions should be published on the company's website after the meeting.
IVIS approach
The guidance advises that, in general, IA members expect companies to seek reapproval every three years for the continued use of virtual elements of an AGM.
In line with the guidance, the IA's Institutional Voting Information Service (IVIS) will not raise concerns with proposals to amend articles of association to permit virtual-only meetings where the companies confirm in the meeting notice that the virtual element will meet shareholder expectations set out in the guidance, including the commitment to seek reapproval every three years.
However, IVIS will "red top" (see Corporate governance: overview, Q&A here) companies that seek approval to amend articles without those assurances, or do not seek a reapproval of the virtual element of their shareholder meeting every three years following first use.
First published on the Corporate News Service on 6 October 2026
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