Bp Fails to Get Shareholder Majority Approval for Two Agm Resolutions

Oil group BP fails to get shareholder majority for two AGM resolutions

BP AGM Resolutions and Shareholder Reactions

By Shadia Nasralla and Stephanie Kelly

Overview of the AGM and Key Resolutions

LONDON, April 23 (Reuters) - BP's new CEO and Chair faced losing votes on two resolutions at their first public outing at the oil major's annual general meeting (AGM) on Thursday, Chair Albert Manifold said.

Details of the Special Resolutions

"While we appear to have overwhelming support for the direction of travel for the company, it seems very clear that the two special resolutions – one relating to our articles and one relating to historic resolutions – have not reached a simple majority," BP Chair Albert Manifold told the AGM.

It was not immediately clear if Manifold was referring to resolutions 22 and 23, which would have permitted virtual AGMs and allowed BP to scrap two previous resolutions requiring company-specific climate disclosures. 

Initial results of votes on the resolutions were due to be announced by BP later on Thursday.

Shareholder and Proxy Adviser Responses

Major Proxy Advisers and Shareholder Positions

Major proxy advisers Glass Lewis and ISS, and top-10 BP shareholder LGIM supported votes against BP's wishes ahead of the AGM, including opposing BP's proposal to scrap two previous resolutions requiring company-specific climate disclosures. 

LGIM also said it planned to vote against Manifold.

Glass Lewis and ISS Recommendations

Glass Lewis said Manifold, who became BP chair in October, was ultimately accountable for BP's decision to exclude a resolution filed by climate activist group Follow This from the AGM and thus recommended a vote against him. The resolution called on BP to disclose how its strategy would perform under scenarios of declining demand for oil and gas.

Norway's $2.2 trillion sovereign wealth fund, the world's largest, and ISS recommended a vote in support of Manifold.

BP Leadership Statements and Future Direction

Manifold's Comments on Excluded Resolution

Manifold said on Thursday the Follow This resolution was not legally valid, without giving further detail, and therefore BP could not include it at the AGM.

Virtual AGMs and Company Strategy

Manifold, who became chair in October and has underscored the need to further reshape BP's portfolio to boost profitability, also said the resolution that would allow for virtual AGMs was proposed as a way to democratise the meetings.

Leadership Changes and Strategic Focus

Thursday's AGM was his first as chair and Meg O'Neill's first public appearance as BP chief executive, after starting the position in April, the oil major's fifth CEO since 2020.  

O'Neill emphasised the need for BP to strengthen its balance sheet and be rigorous in its spending and investment.  

(Reporting by Shadia Nasralla and Stephanie Kelly; Editing by David Goodman and Alexander Smith)