For the first time ever, Hewlett-Packard has abandoned its annual convention-style shareholder meeting in favor of a virtual one.

Another format, a hybrid meeting, is where companies hold both virtual and in-person meetings. Annual shareholder meetings, generally required of all public corporations, have traditionally allowed for shareholders of all types to meet face-to-face with top company executives in a question-and-answer format-in order to learn more about the company's plans for the future.

Hewlett-Packard will not be the first company to host its annual event online, but to date it is the largest to do so. Review-site Yelp and El Pollo Loco, a chain of chicken restaurants, have moved their annual meeting to virtual as well. Less than a decade ago, 21 companies hosted virtual shareholder meetings, as compared to 300 in a recent year. While a virtual event allows for a greater number of attendees, critics argue that questions from shareholders can be prescreened. Face-time, relationship building, networking, and spontaneity become diminished, along with the all-important shareholder-company bond. Companies in favor of the virtual move argue that online meetings save money, particularly when past attendance at the annual meetings has been sparse.

At one point, consumer products giant Procter \& Gamble amended its bylaws to allow for a virtual-only shareholder's meeting, only later to be met with such shareholder resistance that it reverted back to a traditional face-to-face event. Intel and Microsoft have hosted what is known as a hybrid meeting, during which a physical event is held and shareholders can "show up" online.

Companies such as Walmart and Berkshire Hathaway are well-known for their "extravaganza and family-style" shareholder meetings-weekend events that include celebrity entertainment and a variety of other activities. For the 40,000 attendees at Berkshire Hathaway's annual "Woodstock for Capitalists" event, a virtual meeting would be like holding a virtual party.

Questions for Critical Thinking

1. Those who are not fans of online-only meetings argue that investors should have the opportunity to look a CEO or board member in the eye. Others argue that technology can largely replicate the experience of a shareholder's meeting and that online meetings could actually expand the all-important Q\&A session. Do you agree? Why or why not?

2. Some argue that using technology for shareholder meetings broadens access, while others argue that it shuts out shareholders. Which side do you agree with? Explain.