NJBIA supports legislation now on Gov. Phil Murphy’s desk that would make permanent the flexibility that corporations were temporarily granted during the pandemic to hold their shareholder meetings remotely.
The bill, A-4918, sponsored by Assembly Majority Leader Lou Greenwald (D-6), would also extend the remote shareholder meeting option to certain financial institutions, such as banks, savings and loan associations, savings banks, and capital stock associations.
The bill won final legislative approval on Thursday and was sent to the governor for his signature.
“NJBIA hopes the governor signs this bill quickly to show that state government is leaning into successful changes made during the pandemic that both companies and their shareholders view positively,” NJBIA Vice President of Government Affairs Christopher Emigholz said. “Online meetings are often less expensive for the companies holding them and more convenient for participants to attend.”
Emigholz said companies that held shareholder meetings online to avoid mass gatherings during the pandemic found their virtual meetings generated higher attendance and greater engagement.
“Companies have also saved time and money by switching from in-person meetings to virtual meetings and it would be smart policy to allow corporations the flexibility to continue doing so if they wish,” Emigholz said.