CFA Institute Calls for Key Changes to Make AGMs Fit For Purpose

Annual General Meetings (AGMs), the most important legally binding forum for shareholder accountability, risk becoming compliance exercises rather than genuine platforms for engagement in Asia-Pacific, according to a new report from CFA Institute Research and Policy Center.

The report, Unlocking AGMs: From Votes to Voice in Asia-Pacific, draws on in-depth interviews with asset owners, asset managers, issuers, proxy advisers, stock exchanges, and shareholder associations. It finds that clustered meeting dates, short notice periods, language barriers, and predictable outcomes can limit meaningful participation, thus underscoring the need for a fundamental “mindset reset” to strengthen accountability and rebuild trust.

Systemic Challenges Unique to the Region

The report finds that concentrated ownership can reduce the perceived value of voting and participation. Top shareholders control 40 percent or more of equity in several markets, including Hong Kong (58 percent) and Singapore (59 percent), which can make outcomes feel predetermined for minority investors.

Logistical frictions add to the challenge. AGM clustering—notably in Japan (late June) and South Korea (March)—compresses preparation and limits institutional capacity, while short notice periods (as few as 14 days in some markets) and language gaps can further hinder informed participation, particularly for cross-border investors.

While these challenges are not new, the report finds that mounting calls for reform, growing scrutiny of corporate governance practices, and a rising focus on value creation in the region mean that AGMs can no longer be treated as a procedural formality. Evolving AGMs into more effective forums for two-way engagement can enhance trust, improve market competitiveness, and support long term value creation.

Three Fundamental Shifts Needed

The report identifies three fundamental shifts required to make AGMs fit for the future.

• Mindset reset: from compliance to continuum — treat the AGM as part of year-round engagement, not a one-off event.
• Technology: from access to participation — use tools such as real-time translation and analytics to improve dialogue and transparency, while addressing concerns around overly controlled virtual-only formats.
• Ecosystem approach: shared responsibility — progress requires coordinated action by issuers, investors, intermediaries, and regulators.

How Hong Kong Can Empower Retail Investor Engagement

While Hong Kong benefits from a well-developed financial education framework, the report notes that there is scope to complement this foundation with mechanisms that help represent retail shareholders in a coordinated manner. Markets such as Singapore and Malaysia have dedicated retail or minority investor associations that educate investors and provide a platform for organized engagement. In Hong Kong, strengthening structures to support similar organizations could help broaden participation, enhance stewardship practices, and reinforce the role of AGMs as a meaningful channel for dialogue within Hong Kong’s governance ecosystem.

Mary Leung, CFA, Senior Director, Capital Markets Policy, APAC at CFA Institute and lead author of the report, comments: “Our findings highlight opportunities across Asia-Pacific to strengthen AGM practices, particularly in markets where ownership is concentrated and retail participation is limited. This ensures that AGMs, as part of a strong corporate governance network, are not simply compliance exercises but serve as engines of shareholder returns, market growth, and investor protection .”

Call to Action for All Stakeholders

The report sets out targeted recommendations:

• Issuers: improve the timeliness and quality of disclosures (including in English), ensure board and auditor presence, and provide at least four weeks’ notice.
• Asset managers: treat AGMs as an engagement opportunity, not a mechanistic voting exercise; attendance and participation can strengthen accountability.
• Asset owners: set clear expectations for managers’ AGM participation and invest in stewardship capacity and transparency.
• Regulators and stock exchanges: coordinate AGM calendars, modernize shareholder-proposal thresholds, and support independent retail-investor associations where absent.

The report concludes that the future of AGMs will be shaped not by regulation or technology alone, but by the collective mindset of those who participate. Realizing this vision will require coordinated reforms to prioritize meaningful engagement, corporate accountability, and market integrity in Asia-Pacific markets.