BVI shareholder rights face potential threats.

The British Virgin Islands (BVI) has opened a dialogue with companies regarding the modernization and digitization of corporate meeting law. However, the BVI has expressed concerns about the independence of shareholders as a corrective in the context of virtual general meetings.

These concerns stem from the potential exacerbation of issues in virtual settings, as the BVI's demand for an independent role of shareholders remains applicable to this context. The BVI's apprehension is rooted in the restriction of shareholder property rights under the emergency rules, a concern that is not limited to physical general meetings.

A recent study conducted by the BVI found that only a third of the 160 stock corporations listed on the HDax have published the management's speeches in advance for their virtual general meetings. Furthermore, the study did not find any instances where companies have fully complied with the legal requirements for virtual general meetings.

The BVI also noted that only five percent of companies have given their shareholders the opportunity to ask questions at their virtual general meetings. This lack of engagement raises questions about the effectiveness and transparency of these meetings.

The BVI opposes the current state of virtual general meetings, as they only meet the legal minimum requirements. The organization argues that the role of shareholders as a corrective should remain independent of the event format.

In contrast, the German Bundestag is planning to extend COVID-19 emergency legislation for the 2022 general meeting season. The German Investment Fund Association (BVI) has expressed its opposition to this extension, sharing the same concerns as the BVI about the restriction of shareholder property rights under the emergency rules.

However, efforts towards digital modernization in societal assembly practices are not entirely absent. The Committee for Digital Affairs and State Modernization in the German Bundestag actively promotes modernization and digital transformation in legislation, including societal assembly laws. The VDIV Verband der Immobilienverwalter successfully advocated for the legalization of virtual owners' meetings, reflecting a push towards digital modernization in societal assembly practices.

As the world continues to navigate the challenges posed by the COVID-19 pandemic, the BVI's concerns about the preservation of shareholder rights in the context of virtual general meetings remain a significant issue to be addressed.