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CMM Group to launch new multi-media investor communications service as Government fast-tracks electr
Added: (Fri Dec 01 2006)
Electronic reporting legislation ‘fast-tracked’ into effect from January 2007: CMM Group planning transition service and consultancy
London – XX November 2006 – CMM Group, the transactional, marketing and shareholder communications specialist, is to launch its new multi-media shareholder communications service, in early 2007, to accommodate the changing investor communications requirements that have just been fast-tracked by the government for 2007 implementation.
The government’s new provisions in the Companies Bill on electronic shareholder communications will now come into effect in January 2007. These new provisions enable companies to use the internet and e-mail as the default option in communications with shareholders. Companies will only be obliged to send shareholders paper documents, such as annual reports and interim statements, when shareholders positively request a printed copy.
The provisions were previously scheduled to come into effect with the main parts of the Companies Bill towards the end of 2008. However, as a concession to the unexpected requirement on companies to include information on their supply chain within their Business Reviews, the government has brought the ability to report electronically to shareholders forward to January 2007.
CMM Group, a trusted shareholder communications partner for over half of the FTSE top 250, is developing a multi-media communications service to help companies and their advisors take advantage of this new legislation. The new service will allow shareholder records to be tagged with their communications preferences, provide a secure environment for the hosting and management of that communications data, and then a single and seamless service which sends annual reports, proxy forms, interim reports and other mandatory communications in the investor’s preferred medium.
Yolanda Noble, Chief Executive of CMM Group, comments, “This change in shareholder reporting has been on the cards for years. That is why we are investing in a multi-media service offering. As a trusted partner for many investor relations operations, we are in poll position to support their changing needs.”
“We do not, in fact, expect the majority of organisations to make the switch immediately. Those with calendar financial year ends do not have time to do so, and even those with fiscal financial year ends would be hard pressed to carry through the required shareholder resolution successfully and securely in the available time. Additionally, there is the issue of capturing and securely managing shareholder emails. Both shareholders and the companies they invest in are generally unwilling to have email data as part of the public record, and are planning to host this information securely and privately. The brand damage of email abuse in this area could be potentially catastrophic for a listed plc.”
“The government’s decision to fast-forward the electronic reporting element of the Companies Bill will no doubt have caught many company secretaries, investor relations (IR) professionals, designers and printers unawares. We feel it is our responsibility to be prepared early for the new multimedia IR world, and to help corporates and their advisors make the transition safely and securely.”