Investor Relations - A Practical Guide - Investis

Electronic Shareholder Communications:
The Companies Act 2006
Andrew Hutchings, Partner and James Kerton, Associate, Freshfields Bruckhaus Deringer LLP
New regime
The Companies Act 2006 (the Act) created a new
regime for communications between companies,
shareholders and holders of debt securities that
came into force on 20 January 2007. It applies to
any information or document required or
authorised to be sent or supplied under the Act.
This means it covers, but is not limited to, annual
accounts and reports and notices of general
meetings. The three basic types of permitted
communication from a company to its shareholders
are hard copy, electronic communication (such as
email or fax) and website publication.
Website publication: the advantages for companies
and shareholders
The Act allows a company to communicate with its
shareholders by website either with their express
agreement or, if certain conditions are met and
procedures followed, with their deemed
agreement. Website publication has several
advantages for the company and its shareholders:
Since Carillion introduced the
provision of shareholder documents in
electronic form in September 2008,
we have enabled shareholders to
access documents more quickly,
reduced the impact on the
environment through printing a lot
less documents and also benefited
from the cost savings of printing and
posting less. It is a good and sensible
arrangement which recognises the
development in communications.
Tim George
Deputy Company Secretary,
Carillion plc
• increased speed and convenience of
communication for the company and
shareholders - shareholders will be able to
access communications on the date of
publication, rather than waiting for postal deliveries;
• savings on environmental resources, as the
company can reduce paper and printing usage; and
• cost savings in relation to administration, printing
and post.
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Building the Investor Relations Programme