|Companies should treat all shareholders fairly and equitably, and should recognise, protect and facilitate the exercise of shareholders' rights, and continually review and update such governance arrangements.|
Shareholders receive certain rights in return for investing in the company. Apart from the economic rights, these include the right to attend and vote at general meetings, and to receive material information and financial reports on a timely basis.
It is important that companies be pro-active and engage shareholders in a fair, equitable and transparent manner.
The Guidelines describe:
- The duty of the company to facilitate the exercise of shareholder rights, in particular, when share price or value can be impacted. (Guideline 14.1).
- How companies should help shareholders to exercise their rights at general meetings (Guideline 14.2).
- The need for adequate proxies at general meetings for nominee and custodial services (Guideline 14.3).
Companies should facilitate the exercise of ownership rights by all shareholders. In particular, shareholders have the right to be sufficiently informed of changes in the company or its business which would be likely to materially affect the price or value of the company's shares.
Companies should ensure that shareholders have the opportunity to participate effectively in and vote at general meetings of shareholders. Shareholders should be informed of the rules, including voting procedures, that govern general meetings of shareholders.
Companies should allow corporations which provide nominee or custodial services to appoint more than two proxies so that shareholders who hold shares through such corporations can attend and participate in general meetings as proxies.