Shareholder Communications

Companies always want to keep their investors informed and happy. One way they do this is by sending regular communications, giving shareholders information on operations, corporate actions, and major announcements. These communications also give voting shareholders the opportunity to participate in essential decisions about the direction of the company.

By default, a digital version of all shareholder communications are sent to your on-file email address.

If you prefer to receive physical copies, you can contact our support team to sign you up for paper copies at no additional cost.

Please note: If you change your email address, you may be automatically re-enrolled in digital shareholder communications.

Publicly traded companies will usually send communications to their shareholders at least once a year to announce their annual general meeting. Funds such as ETFs and mutual funds will usually send annual prospectus updates that talk about the fund’s objectives, strategies, performance, and more.

Companies may have additional shareholder communications sent for several different reasons. For example, a company may call a special meeting to vote on an extraordinary circumstance, such as a vote being needed to approve a merger or acquisition.

While shareholder communications are important for staying up to date, proxy voting is one of their most important functions.

As a shareholder in a company, you may be entitled to weigh in on major decisions that the company makes. These could be anything from decisions about company leadership, like the election of board members or changes to executive salaries, to specific issues and actions, like environmental initiatives or corporate acquisitions.

Topics are addressed in a board meeting, but all shareholders are given the opportunity to cast their votes by proxy at least 28 days before the meeting to make sure their voices are heard. If you have a proxy vote, you will be sent specific voting instructions with your shareholder communications. This usually involves following a link and filling in an online form to cast your vote.

How important is my vote?

The weight of your vote is usually proportional to the number of voting shares you own. For example, if you hold 10 shares, your vote will have twice the power than if you held 5 shares. 

While your vote may seem like a drop in the ocean, especially for a multi-billion dollar corporation with millions of issued shares, your voice does still have some weight, and enough small shareholders may be able to collectively amount to a significant voice.

Are shareholder communications allowed to tell me how to vote?

Companies are allowed to plead their case and make suggestions in their shareholder communications. However, they are not allowed to force you to vote in any one particular way.

Can I get communications by mail for some companies and by email for others?

No. Your shareholder communication settings will apply to all issuers’ communications.

If my preferences are set to send me digital communications, will I receive any paper communications?

You might. The setting will send regular shareholder communications by email, but you may still receive physical mail. In this case, it will usually be communications that require physical copies to be sent for regulatory reasons, or if the issuer can only distribute the communication by physical mail.

Can I skip proxy votes?

Absolutely. There is no punishment or penalty from not participating in proxy voting. The only drawback is that your voice will not be represented in the company’s decisions.

Can ETF and mutual fund holders participate in proxy voting for the shares held in the fund?

No. For ETFs and mutual funds, voting rights for held shares remain with the issuing company. However, many fund companies will have publicly available voting guidelines that they follow to ensure that they use their voting power in your best interest.

These voting guidelines should be available through the issuer’s website.

Note: The information in this blog is for educational purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied, is made by Questrade, Inc., its affiliates or any other person to its accuracy.