Electronic communications need high take-up
If the move to electronic
communications between
companies and their shareholders is to succeed, it will require high take-up
among private investors as well as the commitment of institutional shareholders
like pension funds.
This is one of the conclusions reached by the working
party of the Institute of Chartered Secretaries and Administrators
(ICSA).
The working party included Tim Clarke, director of the
Manifest voting agency, and David Gould, director of the investment service at
the National Association of Pension Funds. It was formed after the Department
of Trade and Industry asked the ISCA to write a guide on best practice for the
conduct of electronic communication.
The paper will be released in November following the
amendment of the Companies Act which will permit the electronic delivery of
annual reports and proxy voting forms. This follows the passing of the
Electronic Communications Act which allowed for electronic voting by
shareholders.
Robert Blanks, deputy director of the ICSA policy unit
and its group representative, said there were huge potential savings for
companies such as the Halifax with over three million shareholders.
He believes six companies are ready to move to provide
shareholders with everything electronically. Institutional investors had been
slow to communicate electronically with their voting services. He said:
"'Electrifying' the last stage of the voting process will push the rest of it
as well."
Pensions Week
4 September, 2000
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