Markets & Finance

AGM attendance to go digital in Africlear platform

Africlear, a Pan African clearing house partly owned by Kenya’s Central Depository and Settlement Corporation, is set to launch electronic participation of shareholders at annual general meetings (AGMs).

Africlear plans to launch an electronic platform allowing shareholders to appoint proxies, ask questions and make comments.

The system is also targeting companies seeking electronic distribution of documents and making announcements in a more cost-effective matter. “Typically, we find that companies operating in Africa have very low attendance at their general meetings as investors are reluctant to travel from far parts of the country.

Trading processes

"With the electronic general meeting solution, investors can vote, participate, or just watch the proceedings without physically being present,” said Africlear chairperson Rose Mambo.

The Central Securities Clearing System (CSCS) of Nigeria and the Altree Financial Group, a Bermuda-based financial company are the other shareholders in the firm.

READ: Listed firms to automate voting

In May Africlear received Sh36.8 million from the African Development Bank (AfDB) in form of seed capital, through the Fund for Africa Private Sector Assistance.

At the time Africlear said that it would use the funds to invest in infrastructure that is used for post-trading processes such as settlements after a sale is done.