Out-Law / Your Daily Need-To-Know

Electronic communication with shareholders

Out-Law Guide | 17 Jun 2010 | 2:30 pm |

This guide is based on UK law as at 1st February 2010, unless otherwise stated. All companies can communicate with their shareholders electronically rather than by sending hard copies through the...

This guide is based on UK law as at 1st February 2010, unless otherwise stated.

All companies can communicate with their shareholders electronically rather than by sending hard copies through the post, but only if their articles allow them to do so, or a shareholder resolution is passed to that effect.

A company can send documents by email where the recipient has agreed and given an address.

A further provision is useful for companies with large shareholder lists – they can send documents and supply information to shareholders by posting them on a company website, so long as:

  • the shareholders have passed a resolution to permit this or the articles allow for it;
  • every shareholder has been asked to agree to receipt of documents via the website and has consented – or failed to object – within 28 days.

Even once that process has been gone through, the company still has to notify shareholders each time a document or information appears on the website and, unless email addresses have been supplied, that notice needs to be by hard copy letter.

Documents and notices can be supplied to a company in electronic form by a shareholder or third party where the company is in agreement – ie where it has given an email address on a related document.