Monday 14 January 2019

Top Tips On Improving Shareholder Communications

By Linda Russell


In big companies, there will be a number of shareholders that come from different backgrounds and do not really know anything about each other. With that said, there would be times when factions and distrust could brew up. The only way for the corporate secretary and the management team would be to improve on shareholder communications to help fix all the tension.

Now, the goal is to ensure that there is full transparency between all stakeholders so that no one makes any enemies. The very first step is to ensure that the board of directors can be able to identify all the investors and shareholders of the company. This type of transparency allows the board to know who to communicate with in order to bring up to the company to success.

After identifying the shareholders, it is important to take note which one of them have the power to vote. Not all of them opt to have voting powers because they just want to get the capital gains and the dividends from holding the stock. With that in mind, it is very important to know who has voting powers so that they know who to call upon.

After communicating with all the voting investors, it is very important to make sure that all of them have the same direction, which is to make the company grow. While there are some investors that have higher voting rights than others, it is important that everyone still be on the same page. If ever there are problems, they have to be addressed one by one.

Of course, not all of the concerns need to be noted because only a handful of specific problems need to be solved. After all, shareholder meetings are usually made in order to change big company policies that would really affect the business. That is why it is the job of the corporate secretary to set up agendas for the meetings so that only relevant problems will be addressed.

As mentioned above, an agenda has to be set so that all of the shareholders are on the same page. Now, when crafting the agenda, the corporate secretary has to very specific about the problems that have to be tackled so that the meeting does not deviate into something outside of the specified topics. As continuously mentioned above as well, tackle all the concerns of each investor related to the agenda.

Sometimes though, one may not be able to control the shareholders on his or her own. With that, one can seek the help of a proxy advisor. What the proxy advisor will do is he or she will analyze the shareholders based on their individual profiles and also analyze voting so that one will know what moves to make regarding communications among shareholders.

Having shareholders under one roof is a difficult job because of different minds that may oppose each other. It is the job of the board to streamline everything in order to unite the board and push the company forward. The only way to do that is to practice good shareholder relations and also effective communications.




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