Exploring Virtual Meeting Options in the Age of Coronavirus
As proxy season and the coronavirus pandemic collide over the next few months, travel restrictions, quarantines and health concerns are complicating many public companies’ plans for their annual stockholder meetings. Many public companies that typically host annual meetings at a physical location are considering their options for switching to a virtual-only stockholder meeting (“VSM”) or for adding a virtual component to the physical meeting. Other companies are planning a traditional physical annual meeting, while retaining the flexibility in their proxy statements and notices of meeting to switch to a VSM or hybrid meeting or to adjourn the meeting until a later date, if necessary. Some companies are postponing their annual meetings or considering postponement if circumstances do not improve before their scheduled meeting date.
This article outlines the benefits and challenges of each of these options, summarizes some technical details regarding the VSM, hybrid and flex options, and offers some answers to frequently asked questions about VSMs.
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This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.