In discussion the other day we were puzzled as to why the majority of companies on the JSE do not take advantage of Schedule 23 for their regulatory communications to the market and shareholders.
For issuing companies to embark on an electronic consent program, the following benefits accrue to company and shareholder:
- Email addresses of shareholders for direct communication
- Mobile numbers and landline numbers if proffered
- Reduced printing and mailing costs
- More cash in the kitty for dividends or retained earnings
- Saving the planet
- Training your shareholders to come to your official website as the #1 source of fact, news and comment
There are even more reasons to clean up one’s share register, embark on an asset reunification project (tidying up unclaimed dividends) and ALL of them do credit to your brand. How you choose to spin it, be it by planting a tree for every shareholder converted or a reporting unit in your sustainability report, is up to you.
In South Africa, where public monies are involved, its always only a matter of time before the issue becomes politicised.
<pause for effect>
It follows that employing good shareholder communication governance NOW is better than having industrial action in a few months or years, at your AGM or outside your glass doors.
