Bank of Montreal | Strengthening shareholder participation in Annual General Meetings (AGMs) at Bank of Montreal

Status
Filed
AGM date
Previous AGM date
Proposal number
1
Resolution details
Company ticker
BMO:CN
Lead filer
Mouvement d'éducation et de défense des actionnaires (MÉDAC)
Resolution ask
Adopt or amend a policy
ESG theme
  • Governance
ESG sub-theme
  • Shareholder rights
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
Canada
Resolved clause
Be it proposed that the Board of Directors adopt the following measures to protect the organization and mitigate risks associated with declining investor engagement, particularly among individual retail shareholders.
Supporting statement
1.Enhancing the Voting Experience - Collaborate with transfer agents to simplify and improve the accessibility of the voting process, including for in-person and virtual meetings as well as proxy voting; - Provide interactive guides and explanatory videos to help demystify agenda items; - Use personalized reminders or modest incentives to encourage participation. 2. Modernizing Communications - Make communications clearer, more engaging, and better tailored to retail shareholders; - Accelerate the deployment of technological solutions (simplified electronic voting); - Optimize online voting platforms to improve user experience on mobile devices; - Improve access to information for shareholders who are less familiar with digital technologies (printed newsletters, dedicated help lines, etc.). 3.Thematic and Intergenerational Engagement - Integrate strategic or social topics likely to generate increased interest among younger investors (climate, inclusion, AI, etc.); - Highlight shareholder proposals and corporate governance issues in a simplified and accessible format. 4. Documenting Participation - Disclose in the circular, within a dedicated section including a summary table, detailed information on meeting participation (both in-person and virtual, itemized), presented over several years (at least since before COVID), including, where possible: i.the number of votes cast in absolute figures (not only percentages), ii. the quorum, iii. the number of voting shares outstanding (broken down by class, including multiple-voting shares), iv. the number of shareholders (individuals or corporations, Objecting Beneficial Owner or Non-Objecting Beneficial Owner [OBO/NOBO]) present, and iv. the number of proxies (individuals) representing them. The gradual decline in shareholder participation, particularly among individual retail shareholders, raises several questions, namely as to its causes. A steady downward trend, observed over many years, is well documented. Concerning finding: data from Broadridge Proxy Pulse Canada1 reveal: Participation rates among shareholder categories 84.0% 32.1% 2019 84.5% 30.8% 82.2% 82.2% 29.4% 29.4% 80.1% 29.6% 2020 2021 2022 2023 Retail Institutional In 2025, Transat A.T. Inc. was forced to postpone its annual meeting due to a lack of quorum. Such incidents, when publicized2, create uncertainty in the market and concern among stakeholders. Several TSX-V mining companies face similar challenges. By strengthening the participation of small shareholders, the Bank will reinforce its democratic legitimacy, enhance the quality of its dialogue with all security holders, and demonstrate its leadership in modern and inclusive corporate governance. 1 https://www.broadridge.com/_assets/pdf/broadridge-proxypulse-2023-proxy-season-review.pdf 2 https://ici.radio-canada.ca/nouvelle/2161434/assemblee-transat-interrompue-quorum-insuffisant

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