Shareholders are the legal owners of the business and rely on good governance and effective management to ensure that their interests are protected. This is echoed in the Corporate Governance Code: “The Shareholders’ role in governance is to appoint the directors and the auditors and to satisfy themselves that an appropriate governance structure is in place”.
For most companies, there are a range of investors from small retail shareholders through to large institutional ones who may have significant sway in terms of decision making. And it is fair to say there is often a spread of views about what a company should be doing to maximise value and the timeframe over which that should occur. Some shareholders are invested for the long-term whereas others are looking for more immediate returns. It means that a strong and effective relationship with the shareholder base is crucial to ensure the business is being directed in line with the broad interests of its owners. Shareholders require engagement and communication in different ways and boards must ensure they meet these demands.
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Alternatively, if you would like to talk to us about how we can help you communicate how the board are engaging with shareholders please contact our Business Development Manager, Mitchell Kirkham-Cooper on firstname.lastname@example.org