Usually, the allotment authority resolution receives a high level of support from shareholders. However, 50 companies of those surveyed received the lowest number of votes in favour for this resolution with an additional two lost resolutions and one close call. This is often the case where the shareholder base is outside of the UK in a jurisdiction with different institutional guidelines.
A company's AGM Notice should provide full explanations about the guidelines that are followed and the circumstances in which the authority will be used. In the UK, companies should ensure that they follow the Investment Association’s Share Capital Management Guidelines.
Share buyback authority
Of the 537 companies surveyed, 89% put forward a share buyback resolution which was a slight increase over 2020. 95% of these companies received votes in favour of more than 95%, a small decrease on 2020.
About the statistics
- Unless otherwise indicated, statistics quoted in this article are taken from research undertaken by Equiniti’s AGM team. The statistics include all companies in the FTSE 100 and FTSE 250 indices as well as Equiniti clients outside of these indices (referred to as other/smaller). All 2021 statistics are for the 2020/21 year ended on 31 July 2021.
- Statistics based on Equiniti clients only.