Companies: Online AGMs

Lord Sikka Excerpts

Monday 23rd March 2026 Lords Chamber

[Baroness Lloyd of Effra (Lab)]

What we are doing through the consultation on modernising corporate reporting is delivering on our commitment to provide legal clarity on the grey area of whether companies can hold fully virtual AGMs. It would be up to shareholders and businesses to decide whether to take that forward. The proposals that we put forward will be accompanied by appropriate shareholder safeguards.

[Lord Sikka (Lab)]

My Lords, there is nothing in the Companies Act to say that shareholders own companies. They may have controlling rights, but that is not the same as ownership. Besides, shareholders may have short-term interests in companies; therefore, is it somewhat foolish to leave them with the control to direct companies. It is workers and customers who have lifelong interests in companies, and it is time that the Government empowered those stakeholders to promote growth and the welfare of our whole society.

[Baroness Lloyd of Effra (Lab)]

If my noble friend is referring to Section 172 of the Companies Act, which already requires directors to have regard in their decision-making to employee interests and

“the impact of the company’s operations on the community and the environment”,

that is a very important principle.