Listed companies are considering the option of holding general shareholders meetings by video conferencing as a way to attract a legal quorum of shareholders to the meetings.

Refrigeration & Electrical Engineering (REE) has become the first listed company to conduct link shareholders at multiple sites when its meeting opened yesterday in HCM City and Ha Noi.

REE Chairman Nguyen Thi Mai Thanh told the newspaper Securities Investment that REE had a large number of shareholders dispersed around the country and holding the meeting in multiple sites would facilitate their participation.

With a large-screen display, investors and the company's leaders could see each other face-to-face and speak openly, Thanh said.

"At this year's meeting, REE will not present any major matters for a shareholder vote, such as an additional share issue or an increase in charter capital, but we will focus on investment issues," she added.

To ensure security and transparency in voting, Thanh said, the agenda would be publicly announced in advance and all data compiled at the two sites.

Thanh said the cost of holding a video conference in two cities could be a little more expensive than a traditional meeting but was reasonable in terms of the greater participation it would attract.

A number of listed companies recently failed to hold shareholders meeting due to the failure to attract a quorum, including SACOM Development and Investment Company (SAM), Kim Long Securities Company (KLS) and Viglacera Tu Son Ceramics (VTS), so REE's meeting was expected to create a new trend.

Under the Law on Enterprises, a shareholders meeting can only be conducted if at least 65 per cent of total shareholders with voting rights participate. If this rate is not reached, the company must hold a second one with the participation of at leat 51 per cent of shareholders.

SAM General Director Do Van Trac said SAM has wasted a lot of time and expense arranging multiple shareholders meetings over the past three years and would look to the experience of REE in organising its meeting next year.

Laywers said that the law allowed shareholders meetings by video conference but recommended that companies stipulate this kind of meeting in their company bylaws.