Predicting the results of corporate actions can be quite tough. Companies are likely to increase the certainty of these outcomes though when they will decide to engage the services of proxy consultancy services to conduct communication campaigns with the company’s shareholders.
These campaigns that are designed to help shareholders get a better understanding of the issues and at the same time increase and encourage their participation in the voting process. These providers are also able to deliver transparency of the intentions of the shareholders before any event is going to take place with an improvement of the livelihood being considered as a successful outcome. A good start to a successful shareholder campaign is being able to identify your respective investors.
It is important for company boards to gain widespread support from their shareholder. Outreach campaigns need to be performed to investors weeks or even months before these meetings to ensure that their participation is going to be duly maximized. This is important to ensure that quorum levels are guaranteed as this improves the chances of getting a positive voting outcome. This also helps reduce those instances where there are voting errors.
Takeovers and M&A
During corporate actions, it is crucial to be able to win not only the hearts but also the minds of shareholders. This is especially true when the corporate actions are being contested. Campaigns that are targeted and properly designed can help articulate messages and key benefits to shareholders and in return, help deliver support. The sentiments of the investors can be gauged based on the flow and ebb of corporate actions. This allows the board and the advisers to come up with effective strategies for communication. These strategies often involve campaigns with multiple channels as well as using call centers in the local language that are tasked to reach out to the retail shareholders.
This has something to do with altering the strategy or the management of a company. It is considered to be quite disruptive. The use of proxy solicitations can help ensure that more investors are going to have a better understanding of the position of the management and the recommendations of the board. This is quite effective towards getting the activism duly countered. A proxy can also extend a wall of defense tactics that can help lower the support of the shareholders to the support and the advocacy of the activists. As a result, the activist campaign is going to be neutralized.
Advisory on corporate governance
Understanding the expectations of investors on corporate governance is becoming quite important in preparation for general meetings. A proxy consultancy service can help explain to the investors the policies on corporate governance in relation to the proposals and resolutions that need approval. Trough governance studies and road shows, as well as mapping exercises on the dependency of proxy advisory, clients will get a better understanding of the policies while understanding the best practices for proper governance. As a result, this helps improve the chances of meeting resolutions being positive.
Learn more about the positive impact of proxy solicitations in the modern business world by reading about Boudicca Proxy online.