For companies listed on stock exchanges there should not be differences between local and cross-border shareholders, institutional or retail shareholders, controlling and minority shareholders.
In theory, all of them have same rights. In practice the situation is different.
For example:
1. there are companies that disclose the details related to a point on a shareholder meeting agenda only at the headquarter of the company, after the investor signs an NDA and receives a confirmation that can access the information (for instance Nuclearelectrica, Conpet as the most recent examples)
2. other companies restrict the attendance to the events organised with investors to a predefined list created by the management and other shareholders are not informed on such events – the surprise is that there are more employees of the company than shareholders joining. Is it right for all shareholders to support the cost of such events organised with only few investors without even being informed?
3. some companies listed on Warsaw Stock Exchange propose the candidates for a change in the composition of the Board in the day of the shareholders meeting – usually such meetings are not webcasted, and shareholders can vote only physically or via a proxy that joins physically
These are examples of clear breach of the non-discrimination principles.
What is the cure?
- Presenting the details for all points on the agenda, with details on the estimated cost, avoiding presenting commercial secrets if any.
- Inviting all shareholders to join investors conferences and other investor events – if a company has many shareholders needs to assume the risk of having large events.
- Webcasting shareholders meetings and online voting – Evote is a great example for Romanian companies.
The main solution is a clear implementation of the non-discrimination principles by the management of such companies, as the cause of such breached is in companies’ culture.
Shareholders are the owner of the companies, and they deserve to be treated accordingly.