The Association of Investment Companies (AIC), representing investment and venture capital trusts, has withdrawn its petition calling for legal changes to guarantee all investors the right to vote their shares.
The announcement was made following an announcement from the UK government to implement recommendations from the Digitisation Taskforce.
The petition was part of the AIC’s ‘My share, my vote’ campaign, which aimed to protect the rights of retail shareholders often excluded from corporate engagement due to the nominee system used by investment platforms.
The Digitisation Taskforce has proposed a new Bill of Shareholder Rights that would require platforms and other intermediaries to provide essential shareholder services by default. These would include the right to receive company information, vote shares and participate in general meetings, unless the investor opts out.
The Taskforce also recommends that platforms pass on shareholder email addresses to companies upon request, a move designed to facilitate communication and ensure transparency.
Richard Stone, chief executive of the AIC, welcomed the government’s support: “The Digitisation Taskforce has backed our call to uphold the rights of shareholders who hold shares through investment platforms or other nominees. Their recommendations will ensure that all investors can vote their shares, putting an end to poor practices at some platforms that exclude and disenfranchise retail shareholders.”
He added that the AIC would now shift its focus to ensuring the recommendations are implemented without delay, ideally being included in the next King’s Speech.
Stone also encouraged platforms not to wait for legislation: “We would urge platforms to adopt these measures early, ensuring that no shareholder is disenfranchised and companies can engage quickly and cost-effectively with their shareholders via email.”
