When conducting the dry run for your annual meeting, be sure to cover – to the extent you can – the unexpected by conducting scenario planning. Things might go according to plan, but they might not. Better to be safe than sorry because it’s inevitable that there will eventually be a swerve. For some companies, something unexpected happens nearly every year.
Here are four considerations for scenario planning for surprises:
- Once you have rehearsed the adjournment and postponement scenarios, you have covered the responses that need to be automatic. For the remaining scenarios, script out likely situations, such as disruptive attendees and questions that go over the allotted time.
Go through the script quickly and have a copy on the podium if needed. If you’re holding a virtual-only meeting, ensure that your setup allows the speakers to appear as if they’re not reading a script, even though they are, which can be accomplished pretty easily using two monitors – one in front of the other, with the script displayed on the monitor behind the monitor with the camera. - Script out a warning protocol for removing a disruptive shareholder. Most companies follow the “three warning” rule before removing a shareholder (whether it be from a virtual or an in-person meeting), and be clear in the warnings that removal is the consequence.
- Be sure that security understands your warning protocol. Consider whether to silence microphones if needed. For virtual-only meetings, this means the person responsible for ensuring a speaker is muted is able to communicate with you easily so you can have them mute a speaker if you give them the “high sign.”
Some companies have a small “annual meeting working group” run by an individual in the corporate secretary’s group who is responsible for the annual meeting, with representatives from security, board relations, shareholder relations, communications and labor relations (if there is a unionized workforce) to tackle these sorts of issues in the run up to the meeting to make sure that everyone is on the same page. - Have a predetermined way for the general counsel – or whoever is the primary lawyer in charge of the meeting – to consult offside with the chair (or whoever is speaking) during the meeting for unexpected events. I’ll be running a blog soon to dig into this in greater detail.
Authored by
Broc Romanek