Plcs facing new year electronic challenge
Publicly listed companies face a new electronic challenge following the passing of new legislation allowing company documents such as annual reports to be sent to shareholders electronically.
The new Companies Act, Electronic Communications Order 2000 was passed in parliament yesterday.
This means each plc will have to decide how it is going to encourage shareholders to opt for this new mode of communication.
Sending documents electronically is significantly cheaper than sending them in hard copy format, but companies will have to ensure data remains secure on their website and will have to manage the electronic delivery of proxy voting forms.
The DTI has recommended companies consult the Institute of Chartered Secretaries and Administrators’ Best Practice Guide on implementing the new legislation.