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Top Tips On Improving Shareholder Communications

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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.

In order to have better and more transparent communication between shareholders and investors, the first thing that one has to do is make sure that the board of directors know all the investors. Usually, it would be the board of directors and the investors that would have tension because of disagreements in company policy. So the first thing for the corporate secretary to do is identify the shareholders and determine what their goals and vision are for the company.

After identifying all of the shareholders, the next thing to do is to identify all the ones that have the voting power. Take note that there will be investors who are only pumping in money to make capital gains and dividend gains. These ones are the ones who do not have any interest in crafting company policies so one does not need to gather them when unifying the shareholders for a company policy meeting.

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.

Of course, this does not mean one needs to do all of that on his or her own. There are proxy advisors who can help. They can analyze all shareholder data and profiles. They can also analyze all shareholder voting powers and processes to help corporate secretaries control the situation.

For those who are in charge of facilitating and keeping the shareholders in the room, then make sure to follow some of these tips. Especially for large corporations, controlling the number of shareholders is going to be very difficult. For this reason, one has to know exactly how to do it otherwise things will definitely spiral out of control.




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