Top Tips On Improving Shareholder Communications

السبت، 12 يناير 2019

By Linda Russell


If one manages a big corporation, then he definitely will not be able to ignore the presence of big time investors and shareholders who will participate in company policy crafting. Of course, with all the shareholders present, it is not surprising if there would be some tension between the big number of investors and the board of directors. It is up to the board, specifically the corporate secretary to establish proper shareholder communications to ease the tension.

For those in charge of handling shareholders, the first thing that one has to do is ensure transparency. In order to do this, one has to be able to identify all the shareholders to the board of directors, just for the sake of transparency. After all, shareholders will already be able to know who the board of directors are, so it is only fair that the board of directors have the same information.

Now, do take note that not all shareholders have voting power. There are investors that are just there to earn money and do not really participate in the direct management of the company. So in order to have a clearer and more united vision, one has to talk to the voting shareholders and unify them with the existing management and board of directors.

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.

One thing to take note of though, is to be fair when addressing concerns. There are investors that have bigger holdings than others, these of which are the ones that the board would usually listen to since they have higher voting power. However, it is only fair and right that all investors who have concerns should be heard out as one may have more insights than the others.

Now, when crafting the agendas of the shareholder meetings, the corporate secretary has to be extremely specific. This means that he or she must list down the main subjects, then the specific subtopics of the main subjects so that everyone will be on the same page. This is to make sure that the discussion does not deviate into something that is off the topic and irrelevant.

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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