Online Operation is the Cost-Effective Choice for Shareholder Meeting Season 2024

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Expectation of profit growth and the optimization problem of business costs

Mr. Nguyen The Minh, Director of Research and Product Development for Personal Customer segment at Yuanta Securities, also agrees that the business performance in 2024 could be brighter. The first and most important factor is economic recovery; the second factor is input costs.

On one side, cost reduction is expected to come from external factors such as lower interest rates. With low interest rates in 2023, it is highly likely that interest rates this year will continue to decrease and stimulate the recovery of credit growth. The reduced pressure on interest costs will lead to higher net profit margins for businesses compared to 2023.

On the other hand, cost reduction also requires internal efforts from businesses such as streamlining the workforce and applying digital transformation, especially in operation and shareholder interaction management. Although no longer affected by the Covid pandemic, many businesses still choose to organize online meetings and voting before the peak annual general meeting season in March and April this year.

“In the past, with traditional shareholder meetings, the preparation process used to start 2-4 months in advance. However, in the past 3 years, with the option of organizing meetings both directly and online, with all shareholder interactions being done 100% online, we have shortened the preparation time to only 1 month. This helps the company save about 60% of costs and 2/3 of the personnel involved in organizing the meeting”. – Mr. Hoang Duc Minh – Investment Specialist & Shareholder Relations of FPT Group said.

More than just an economic issue, it is about the enterprise value

In addition to saving costs, time, and human resources, the application of technology in general meetings or activities with shareholders also improves the experience of investors, demonstrating the commitment to digital transformation and the sustainable value of the enterprise.

Vinamilk is one of the pioneering companies in using technology platforms in management, shareholder interaction, and operation of annual general meetings. In a podcast on building sustainable relationships with shareholders, Mr. Dong Quang Trung – Head of Shareholder Relations at Vinamilk shared about the optimized strategy for organizing online general meetings in the past 5 years. Initially, this form was to overcome geographical and communication barriers during the Covid era, however, later on, online operation gradually became the priority choice of Vinamilk because of its convenience, cost-saving, and especially the ability to ensure transparency and security in the voting and election process.

Shareholders’ interactions on the online meeting system

According to Ms. Hoang Thi Lan Huong – Product Director of UVote Solution under FPT, “When working with customer companies, we see a great demand for exchange and interaction between shareholders and businesses. When it comes to organizing online general meetings, many companies are often concerned that investors cannot ask questions, leading to dissatisfaction with the company. In fact, based on the feedback from customers, UVote finds that 90% of businesses agree that the interaction process with shareholders on the online platform is very easy thanks to the ability to make direct calls and the 1:1 Dialogue feature.”

Choosing the right solution to ensure legal compliance and optimize operations

Currently, Article 3, Article 144, Enterprise Law 2020 has updated the methods that shareholders can participate in and vote through online conferences, electronic voting, or other electronic means. However, there are still many legal loopholes that need to be synchronized and tightened to ensure the rights and security of investors.

As an online general meeting organizer developed by FPT, the operating procedure of UVote includes all steps to organize the meeting, from inputting shareholder data, sending personalized invitations, supporting shareholders to log in and authorize, to voting, ballot counting, and automated reporting. In early 2024, in addition to shareholder identification methods via OTP, QR codes, and eKYC, UVote is the pioneer in adding identification forms through Chip-attached ID cards with FPT’s FPT.IDCheck technology verified by the Ministry of Public Security. Moreover, the solution also includes the signature requirement of shareholders or authorized persons to enhance security and tighten legal responsibilities.