The Function of General Meetings – Evidence from Denmark and Sweden

Therese Strand

The project empirically examines the shareholders’ number one corporate governance mechanism for monitoring firm managers; the annual general meeting (AGM). General meetings are granted legal status as the primary forum where investors can ensure themselves of getting a return on their investment by exercising monitoring duties and therefore recognized as highly important for the corporate governance system. AGMs are intended to provide shareholders with the opportunity to gain information, discuss with other shareholders, and make decisions in order to hold managers accountable of their actions.

The project focuses on whether annual general meetings fulfil these intended functions and serve as an arena for shareholders to monitor management. The study is conducted through participant observations at annual general meetings in Denmark and Sweden. Shareholder behaviour is quantified and analyzed from legal and economical perspectives. The study will bring substance to further discussions on whether annual general meetings should be developed into electronic meetings or abolished and replaced with other instruments for monitoring and shareholder involvement.

Project to be finished autumn 2008