The Association of Investment Companies (AIC) has launched a petition calling for changes to company law to ensure greater access to voting for retail investors.
The association’s ‘My share, my vote’ campaign was launched after issues with access to voting on major platforms were highlighted during Saba Capital’s recent activist campaign, which saw votes on whether to replace the board of directors at seven investment trusts.
The votes prompted shareholders to vote in record numbers to back the incumbent boards, with Saba unsuccessful in all seven meetings.
See also: Trust Talk: The AIC’s Richard Stone on activism, engagement and the Saba saga
“The major platforms stepped up to the challenge and wrote to all their customers,” said AIC CEO Richard Stone.
“Along with significant activity by the companies themselves and a high-profile media campaign, this resulted in unprecedented levels of voter turnout.
“However, there were still too many examples of platforms that did not pass on the information or voting rights, or tried to charge investors, wealth managers or advisers to vote their shares. This has to stop.”
The campaign has been supported by Baroness Bowles and Baroness Altmann, as well as Quoted Companies Alliance CEO James Ashton and ShareSoc director Mark Northway.
“All shareholders must be able to vote – it’s their fundamental right,” Stone added. “The Companies Act currently states that nominees, such as platforms, may pass on company information and voting rights. We believe that’s not good enough. These rights must be passed on and the law should be changed accordingly.
“I have written to all the major platforms urging them to take steps ahead of a law change, including automatically opting customers in to receive this information unless they actively choose to opt out.
“We are also calling for a change in section 793 of the Companies Act so that nominees provide companies with email addresses as well as postal addresses. We need to bring the law up to date. Being able to email shareholders will make communication more timely and cost effective.”