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Why should you conduct a small shareholder dealing programme?
In the average listed public company that has shareholders with paper share certificates, 60-70% of the shareholders each own less than 2% of the issued shares. Most of these people are not investors as such - they receive shares "accidentally" as the result of a terminated employee share ownership scheme, a merger, a share consolidation or a company reorganisation. Alternatively, they may inherit shares, receive them as gifts or have shares left over from previous scrip dividends.
Most are also inactive - that is to say, they fail to respond to communications, neglect to exercise their rights or fail to claim dividends and other entitlements. However, research shows 20% to 30% would sell their shares if provided with an easy and cost-effective way to do so. Some would even increase their stake in the issuer.
Companies with large registers therefore have the opportunity to reduce shareholder numbers and, by extension, the cost of their investor relations function. They may also be able to give their management a much greater degree of freedom, by reducing the number of people entitled to consultation on certain decisions. In our experience, the average company saves £5 to £10 per account, per year, by providing a user friendly facility for small shareholders to sell.
Why use TSP to help your shareholders buy or sell shares?
The Shareholder Partnership (TSP) is the only independent firm to design and manage proactive programmes for share dealing among small shareholders. Using our international network of contact centres, and our staff of highly trained agents with relevant financial skills, we can alert individuals to the benefits of selling or consolidating their holdings. Our intention in such cases is not to carry out a "hard sell" on your behalf but to put the "Stakeholder First™".
This creates a win-win situation in which you benefit from a smaller register and good will among remaining stakeholders, whilst sellers are able to redeem their shares for cash. We have strategic alliances with stockbrokers in South Africa and the UK and this means that we can expedite deals in a secure environment.
Our international reach means we can also handle holders of American Depository Receipts in the US or Canada, as well as shareholders in South Africa. Hundreds of companies already benefit from our share dealing programmes and, in most cases, costs are borne entirely by the shareholders.û
"In our experience, the average company saves £5 to £10 per account, per year, by providing a user friendly facility for small shareholders to sell."
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