Shareholders
Shareholder Changes
Where major shareholders make significant changes to their holdings this should not come as a surprise to the Board. It is inherent in institutional shareholders' duties to explain to companies where they have significant holdings their reasons for significant investment or disinvestment.
The onus is not exclusively on shareholders to discuss their views with Boards of companies. Boards should ensure that they are made aware of any material changes in the share register and understand, as far as possible, the reason for the changes. A good chairman and SID will have regular conversations with major shareholders so there will be no surprises.
Much has been spoken and written about the role of institutional shareholders in the financial crisis with comment particularly in the Walker Review and the FRC. The FRC is looking to separate out from the Code the statement of Principles to form the core of Principles for Stewardship.
Effective communication with shareholders is imperative and CTP Global provide Board Development services to enhance company relations with investors.
Contact CTP Global now to discuss your requirements in confidence...
CTP Global – Good Governance: Great Performance
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