For a listed company on the stock exchange, shareholders and investors are the ultimate arbiters when it comes to the company's market value. A company may be performing well and generating good returns, but unless that performance is recognised by the market, the share price may stagnate or at worse, decline.
A structured and regular communications programme, providing accessible and valuable information to shareholders and investors is essential to maintain the reputation and credibility of an organisation.
Companies can communicate with shareholders and investors using a variety of different channels and media. Traditional avenues include shareholder meetings, annual and interim reports, the company's website, analyst roadshows and briefings and shareholder newsletters.
However, the increased ease of access and use of broadband internet means that any effective communications programme should also include more progressive communication practices that allow shareholders to more directly communicate with management and the board. Podcasts and webcasts, RSS feeds, shareholder forums and online newsletters all help to improve the information flow between a company and its shareholders.
Our top tips to effective shareholder communications include:
- Regularly review and analyse your share register
- Regularly track market perception and expectations
- Understand and comply with market disclosure rules
- Focus on communication of corporate governance principles, not just compliance
- Develop a structured communications programme, ensuring you are talking to all key audiences
- Ensure professionalism of all communications
- Regularly review and update key messages, and make sure they are tailored to individual groups
- Consistency is key
For more advice on your corporate communications requirements, please contact Jackie Ellis on 09 3666100 or jackie@ellisandco.co.nz
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