African Investor Relations

Consider this wording from the Companies Bill 2008 relating to shareholder communication:-

“Where the document or information is sent or supplied “by means of a website”, it is deemed to have been received by the intended recipient—

(a)       when the material was first made available on the website , or

(b)        if later, when the recipient received (or is deemed to have received) notice of the fact that the material was available on the website.”

This all encompassing legality provides a legal exit for listed companies not interested in providing basic shareholder rights. What common law rights do shareholders have that may overrule this sort of requirement? Will companies honestly adopt this as an easy exit?

In the US the Shareholder Communications Coalition is an advocacy organization dedicated to improving the ability of individual investors to vote their shares and communicate with the publicly traded companies in which they invest. The Coalition also seeks to educate individual investors about their rights as shareholders and the importance of participating in corporate elections. Efforts are underway to restore the direct communications links between shareholders (yes each one individually) and listed companies. The same is happening in Nigeria where corporate governance failures in public capital markets have crippled a nation.

Kenyan regulators are not taking a long term view. Not concentrating on the corporate governance issues.

Is anyone aware of any other Nation that has similar shareholder communications legislation?

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