Shareholder Advocates Demand More In-Person Annual General Meetings - Germany's Virtual AGMs Spark Investor Backlash Over Transparency and Engagement
Virtual shareholder meetings remain a point of contention in Germany long after the pandemic. While many European companies have returned to in-person or hybrid formats, several major German firms still hold annual general meetings (AGMs) exclusively online. Critics argue this approach weakens investor engagement and participation rights.
Virtual AGMs became common during Covid-19 as a temporary solution. Yet Germany is now the only European country where multiple large companies continue the practice years later. The German Shareholder Association (DSW) has criticised many DAX-listed firms for sticking with online-only meetings, claiming they reduce transparency and dialogue.
Shareholder participation in virtual AGMs has fallen steadily since 2023, undermining claims that digital formats attract more investors. Despite this, at least one major company—Covestro AG—held its 2024 AGM entirely online. The decision followed an internal review of legislation, costs, and shareholder structure.
Most German blue-chip firms still rely on virtual meetings, while smaller and mid-sized companies have largely returned to in-person events. Advocacy groups, including the Ethos Foundation and Shareholders for Change, are pushing for hybrid models instead. A hybrid format would let investors choose between attending physically or online, ensuring direct interaction with management.
The campaign is backed by influential networks like Better Finance, with signatories managing assets worth €468 billion. Together, they are urging corporations to offer more in-person or hybrid options before the next AGM season begins.
The debate over virtual AGMs highlights a divide between corporate convenience and investor preferences. With participation declining and criticism growing, pressure is mounting on German firms to reconsider their approach. The outcome could shape how shareholder meetings are conducted in the coming years.
