Translation. Region: Russian Federal
Source: Central Bank of Russia
An important disclaimer is at the bottom of this article.
The Bank of Russia and the Ministry of Finance of Russia are offering state-owned companies whose shares are traded on the stock exchange, adhere to best practices Building relationships with retail investors. These are based on the principles of information transparency and protecting minority shareholders' rights.
When making corporate decisions, issuers should consider the interests of retail shareholders, who want to be confident in the company's long-term sustainability, expect dividends, and share price growth. Therefore, companies are encouraged to participate in Shareholder Value Creation Programs.
Regulators advise issuers to be more open and communicate with minority shareholders about the company's development strategy, its operational and financial goals, and current performance indicators. This should preferably be done in understandable language and with the use of visual aids. It is important that such information be reflected, among other things, in the company's annual report, a key source of information for investors.
Companies are also encouraged to expand their investor communication channels and prioritize resources with a wider audience reach and feedback opportunities. In addition to traditional formats (press releases, website sections), issuers are encouraged to hold meetings with management for minority shareholders, host various conferences, maintain social media accounts and podcasts, and create dedicated mobile apps.
Particular attention should be paid to the involvement of retail investors in the company's operations, providing them with the opportunity to participate in its management and important decision-making by nominating their candidates to the board of directors. It is considered good practice for the company to have a Minority Shareholder Engagement Committee.
According to the Bank of Russia, following these recommendations will establish a new standard for the quality of relations between major issuers and their retail shareholders. This will harmonize corporate practices, strengthen investor confidence, and facilitate stock market capitalization.
Preview photo: Matej Kastelic / Shutterstock / Fotodom
Please note: This information is raw content obtained directly from the source. It represents an accurate account of the source's assertions and does not necessarily reflect the position of MIL-OSI or its clients.
