The traditional Annual General Meeting (AGM) is at a crossroads in the UK. While the COVID-19 pandemic forced a rapid shift toward virtual solutions, the return to “business as usual” has seen a resurgence of in-person gatherings. However, for small and mid-sized quoted companies, the question remains: how can technology be harnessed to improve engagement without sacrificing the core tenets of shareholder democracy?
Our latest research report, “Meeting Expectations: AGMs for Growth Companies in the Digital Age,” explores the evolving landscape of shareholder meetings. It examines the legal hurdles, cost implications, and the varying perspectives of companies and investors as they navigate the shift toward digital and hybrid formats.
Key Findings: A Divided Landscape
The research highlights some of the current issues surrounding the adoption of virtual AGMs in the UK::
- Legal Uncertainty: A major “grey area” persists regarding Section 311 of the Companies Act 2006. It remains unclear whether the law mandates a “physical” location, leaving many companies reluctant to commit to fully virtual formats for fear of legal challenge.
- Format Disparity: Larger companies are leading the digital charge. Three times as many FTSE 250 companies, and double the amount of FTSE 100 companies, held a virtual-only meeting in 2025 compared to AIM companies. With regards to hybrid meetings, approximately 38% of FTSE 100 companies held AGMs in this format, compared to just 1% of AIM companies.
- The Cost Barrier: For many small and mid-cap companies, the financial burden of virtual and hybrid platforms is currently prohibitive. This has been highlighted by small and mid-caps as an important factor keeping them tethered to purely physical meetings.
Modernising the Framework: Our Recommendations
To ensure the UK remains a competitive and modern marketplace, the QCA is calling on the Government and the Department for Business and Trade to:
- Amend Section 311 of the Companies Act: Recognise the legal status of virtual AGMs to provide companies with the legal certainty they need to innovate.
- Ensure Shareholder Consent: Require companies to seek shareholder approval via their articles of association to move to a virtual-only format, with the need to seek shareholder re-authorisation every five years.
- Default to Digital: Fast-track reforms under the Digitisation Taskforce to allow the digital distribution of AGM documents as the default option.
