As a shareholder who is invested in several trusts, I am skeptical about sharing my personal information such as my email and home address with these organizations. However, many retail shareholder advocacy groups such as ShareSoc and the UK Shareholders’ Association have been calling for a register of individual shareholders’ names and addresses for years. In fact, Archie Norman, the chair of Marks and Spencer, has started a petition that supports this cause, hoping to bring company law into the 21st century.
The petition also calls for beneficial shareholders to have the right to direct information on listed companies they invest in and to recognize digital annual general meetings in law. While digital AGMs could offer greater convenience and participation, they cannot replace the value of face-to-face meetings.
A potential issue with the current system is that most investors today use an investment platform’s nominee account and are recognized only as the “beneficial owner” of the shares, not the legal owner, making it impossible for the company to know who its shareholders are. This information could be essential for policymaking, but without reliable data, it has remained a low priority.
However, changing the current law could be tricky as it raises concerns about privacy and potential scams that could occur if personal data is made public. Still, there are potential benefits to consider, such as having greater control over your shares and avoiding potential profits made from your shares by brokers you don’t know about.
Aside from regulatory reform, another major issue is the use of jargon and technical language when communicating with shareholders, making it difficult to understand voting resolutions and other important matters. We need plain English communication and regulators who will hold companies accountable for clear and concise shareholder communications. Until then, organizations like the Association of Investment Companies and Interactive Investor are trying to promote better shareholder engagement and communication.
In conclusion, while the idea of sharing personal data may seem daunting, there are many potential benefits to having a register of individual shareholders’ names and addresses. However, it must be done in a regulated and secure manner, and transparency and plain English communication must be upheld to ensure shareholders are informed and engaged.
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