The aftermath of COVID-19 pandemic and the imperative of electronic meeting for public companies under Companies and Allied Matters Act 2020

Abstract

The right to vote in the annual general meeting (AGM) is a crucial right of shareholders. This right is well recognised under Nigerian company law. However, the exercise of this right in the AGM is not without some hindrances which include a lack of transparency in the voting process as well as a lack of recognition of information and communication technology especially at the peak of the COVID-19 pandemic when physical meetings became almost impossible due to movement restrictions imposed by Federal and state governments. The study employed two methods of data collection, namely, a doctrinal method which obtained data from statutory provisions, case law and authored work obtained in the library while the second set of data concerns qualitative interviews conducted face to face with 10 relevant respondents in Nigeria. The findings indicate that though the current Companies and Allied Matters Act 2020 recognises electronic voting and meetings for private companies but there is no such provision for public companies. The question remained whether shareholders in a public company can exercise their voting rights electronically visa vis other constraints on access to the internet in Nigeria. Based on the report of the telecommunication industry and the opinion of respondents in this study, there is great prospect for e-voting and meetings for public companies especially after the COVID-19 pandemic that made physical meetings almost impossible. It is recommended that CAMA 2020 be reviewed to have an express provision for e-voting in public companies as a global phenomenon in corporate meetings today. Further research may consider adopting a quantitative study on the same subject.