Shareholders of newly Lusaka Securities and Exchange-listed tree processing company ZAFFICO will have to wait another year before they are able to meet face to face with their management team in light of the maiden annual general meeting being held via ZOOM amidst COVID19 restrictions, according to a statement from the company.
On 18th March 2020, this website reported that LuSE Secretariat had given notices “to all Companies listed that in light of the Press Statement by the Honorable Minister of Health, Dr. Chitalu Chilufya on COVID-19 issued on 17th March 2020, the Statutory Instrument No. 22 of 2020, as read together with other applicable legislation and the Securities and Exchange Commission Circular No. 2 of 2020, dispensation shall be given by the LuSE to Companies that wish to postpone their Annual General Meeting upon submitting written approval from the Patents and Company Registration Agency (PACRA)”.
Social distancing demand dictates that it would be difficult to host all the shareholders of the 400 million shares that are listed on the LuSE with a current market capitalization of K852 million. For this reason, in order to meet their fiduciary duties the company, along with others, has opted to use technology to host the AGM.
“Zoom is the leader in modern enterprise video communications, with an easy, reliable cloud platform for video and audio conferencing, collaboration, chat, and webinars across mobile devices, desktops, telephones, and room systems”, according to the company’s website. “Zoom Rooms is the original software-based conference room solution used around the world in board, conference, huddle, and training rooms, as well as executive offices and classrooms”.
Headquartered in San Jose California USA, Zoom Video Communications is a communications technology company that has transformed remote meetings for many companies during this difficult period in world history that has seen the crippling of corporate mobility with AGMs not being spared.
However, with Zoom, shareholders will have an opportunity to virtually meet with the Board and management team hear first-hand about the company’s 2019 financial performance as well receive and consider the Directors’ recommendation that a final Dividend 6.83 ngwee per share be declared for the year ended 31st December 2019 which will be payable to all eligible shareholders registered in the books of the Company at the close of business on 26th June 2020, being the record date.
Financial Insight anticipates that, like the other few LuSE listed companies that have adopted this method, the rest will adopt what will become a new era of hosting events such as this. Although not enshrined in the legislation around the hosting of AGMs, it may become prudent for guidance rules for such virtual meetings to be put in place to ensure that all the needs of investors and shareholders are virtually meet.