NSE Pushes For Companies To Legalise Virtual Meetings

The Nigerian Stock Exchange (NSE) has recommended that companies legalise virtual meetings in their operations, saying it had become necessary so that  members could participate in meetings during emergencies.

Companies globally and in Nigeria have resorted to virtual meetings as alternative for physical meetings due to the coronavirus pandemic.

The NSE made the recommendation on Monday in a guideline titled “NSE Guidance on Companies’ Virtual Meetings.”

“It is recommended that the Articles of Association of a company or its Board, Committee, and Management Charters or Terms of Reference should provide for and authorize virtual meetings,” the bourse said.

The Companies and Allied Matters Act (CAMA), a regulatory framework for businesses in Nigeria does not prohibit virtual meetings. However, the Act is silent over the matter.

NSE explained further that the Act was enacted in 1990 when virtual meetings were “not within the purview of most professionals involved in governance discussions.”

The bourse said that people who are eligible to attend a meeting could opt for electronic means, adding that they could contribute to the meeting and vote when neccessary.

“The Articles or Charters or Terms of Reference may authorize the company’s Board, Committees or Management to make use of virtual/electronic media in enabling their members’ participation in meetings.

“The authorization may also prescribe that persons who are entitled to attend, but are not physically present at the meeting venue, can choose to attend via electronic means – with the right to speak, and vote at such meetings electronically,” the exchange said.

However, the exchange addressed concerns which may arise from the availability of technology for such meetings, saying that the companies should first consider if they had adequate technology for electronic meetings.