Abstract
Disclosure of annual general meeting (AGM) minutes on the corporate website is considered as additional disclosure. Consequently, Listing Requirements states compulsory disclosure of corporate information. In this regard, the awareness of compulsory disclosure of information among all Malaysian listed companies in 2017 was below expectations. Despite the role of AGM minutes as documented proof of meeting, the management had been reluctant to disclose AGM minutes on the corporate website unless demanded by the shareholders. This paper focuses on previous mandatory disclosure of discussions on key matters after AGM minutes among 261 listed companies based on the financial year ended December 31, 2016. The findings indicated that shareholder activism and the role of grey directors exerted influence on the disclosure of AGM minutes on the corporate website. Undoubtedly, management and investors have contributed toward voluntary disclosure in line with the government’s role to enhance shareholder rights. Besides, grey directors’ contribution towards information disclosure has remained relatively unexplored.
Highlights
Slack and Shrives (2010, p. 84) claimed that researchers and professionals strongly believe that the demand for voluntary disclosures by stakeholders have been increasing for the last two decades
The findings indicated that shareholder activism and the role of grey directors exerted influence on the disclosure of annual general meeting (AGM) minutes on the corporate website
This paper examined the relationship between voluntary disclosures of AGM minutes on the corporate website based on a sample of Malaysian public listed companies for the financial year ended December 31, 2016
Summary
Slack and Shrives (2010, p. 84) claimed that researchers and professionals strongly believe that the demand for voluntary disclosures by stakeholders have been increasing for the last two decades. Beginning January 31, 2017, Section 340(1) of the Companies Act 2016 states that “every public company shall hold an AGM in every calendar year besides other meetings held during that period, to transact the following business: a) the laying of audited financial statements and the reports of the directors and auditors; b) the election of directors in place of those retiring; c) the appointment and the fixing of the fee of directors; and d) any resolution or other business of which notice is given in accordance with this Act or the Constitution.”. Through the AGM minutes, management and investors will know the list of participants during the meeting, the agenda discussed, questions raised by the audience, time frame of the meeting, total voting of resolution(s), and outcome of the meeting which can benefit existing and potential shareholders who are unable to attend or are not involved in the event as mentioned in the Best Practice Guide on AGMs for Listed Issuers published by MAICSA-Bursa Malaysia Berhad in 2016 (MAICSA, 2016). The rest of this paper is organised as follows; Section 2 briefly presents the literature review and hypotheses development; Section 3 discusses the research methodology; Section 4 highlights the results and analysis, and Section 5 presents the conclusion and contributions of this paper
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