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.
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.
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.
Now, when bringing all the voting shareholders in the room, one must make sure that all of them have the same direction and vision. As mentioned, there are some investors that have more voting power than others. As a board member though, one should not only listen to the investors with the most holdings, rather listen to all valid concerns and solutions that come with them.
Now, most of the board members would usually butter up to the investors with the bigger shares. However, this will not help fix the company since it is possible that the one with less shares has more insight. In order to be fair, one has to make sure that he or she listens to the concerns of all investors and sit them down for a compromise.
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.
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.
Managing shareholders is definitely a tough job but someone has to do it. In order to bring the company forward, communication is very crucial. As long as the lines to communication remain clear, then there should be no problem.
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.
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.
Now, when bringing all the voting shareholders in the room, one must make sure that all of them have the same direction and vision. As mentioned, there are some investors that have more voting power than others. As a board member though, one should not only listen to the investors with the most holdings, rather listen to all valid concerns and solutions that come with them.
Now, most of the board members would usually butter up to the investors with the bigger shares. However, this will not help fix the company since it is possible that the one with less shares has more insight. In order to be fair, one has to make sure that he or she listens to the concerns of all investors and sit them down for a compromise.
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.
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.
Managing shareholders is definitely a tough job but someone has to do it. In order to bring the company forward, communication is very crucial. As long as the lines to communication remain clear, then there should be no problem.
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