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How To Improve Shareholder Communications

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.

Now, one thing to do is to make sure that all of the investors are all in the same page, which is to make sure that the company grows. With that, each shareholder meeting must have an agenda wherein all of them will have to give their own outputs on how to solve certain problems. The corporate secretary must just make sure that the vision is all the same.

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.

With all that in mind, one should now set the agenda for the shareholder meeting. The corporate secretary has to be as specific as possible with company agendas otherwise the discussion can deviate to another topic without anyone knowing. From there, the facilitator will have to listen to all of the concerns of each shareholder regarding each concern in the agenda to get an objective view.

Now, if one cannot handle doing all of that, then a proxy advisor may need to come in. What the proxy advisor can do is to analyze all the data and the entire voting process of the company. From there, they will give the board advice on how to handle the shareholders and how to move about when the voting time comes.

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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