Hello! Today's article is about, how to use your rights as a shareholder. Like for useful and relevant content!
Voting at a meeting of shareholders Voting at a meeting of shareholders
Share - security paper, giving 3 rights for its owner:
1. The right to receive part of the profit in the form of dividends
2. Right to a part of property, remaining after its liquidation
3. The right to participate in the management of a joint stock company
With the first right, everything is clear, many of you, who is already investing, dividends are received on the account. To do this, you just need to be the owner of shares on a certain date - the date of the register closing. After that, the dividends themselves go to the brokerage (or a current bank account) shareholder.
The second right is a topic for a separate conversation, about which you can write a separate post. Briefly, then the shareholders are the last in the list of those, to whom the balance of the bankrupt company is paid.
Finally, third - the right to manage a joint-stock company by voting at meetings of shareholders. This right many minority shareholders (small shareholders) ignore, it is understandable - if there are few shares, then this practically does not affect the outcome of the vote. But there are moments, when the outcome is not clear and every vote can decide the fate of the company, so this post will focus on, how to exercise your right to vote.
Let me explain using Aeroflot as an example, which one 11 September there was an extraordinary meeting of shareholders, and 17 August, an absentee vote was held on the additional issue of shares.
Due to poor financial situation due to the crisis, The Board of Directors proposed to additionally place 1,7 billion. Shares. Aeroflot had 1,1 billion. Shares, and now it has become 2,5 times more. The state is mainly interested in buying shares, and thus it indirectly financed the company and increased its stake in it..
The share of other shareholders was diluted, hence, this in the long term will lead to a decrease in dividends (when will they start to pay after the crisis) And, maybe, decrease in the value of shares. Roughly speaking, the company is not financed by the state, and the shareholders.
That is why I took part in voting for the first time at an extraordinary general meeting of shareholders.. Moreover, in free circulation there is 40,9% shares are institutional investors, physical. persons and management. The rest belongs to the state. It is worth noting, that for the acceptance of the additional issue, need to 75% votes in favor of the total number of votes, and the state only 59,1%.
So how to exercise your right to vote, if you are a shareholder? For this there is a website of the Independent Registrar Company R.O.S.T. (NRC – HEIGHT.) - a large Russian registrar, professional participant of the securities market. The company provides issuers and shareholders with accounting services, storage, re-registration, and the exercise of the rights, secured by securities. The last is just that, what we need.
For that, to vote you need: go to the NRC website – GROWTH. (you can drive "nrk growth" into Google) → click "Online" at the top right → at the bottom, "Personal account of the shareholder" → enter through State services → receive the key via SMS → ready, you can take part in polls.
Website of the Independent Registrar Company R.O.S.Text of the Independent Registrar Company R.O.S.T
You will see a list of current meetings., as well as archive of collections. Voting on Aeroflot has already passed, but according to the same principle, you can take part in any meetings of shareholders and express your right to vote.
For me, this is the first vote at shareholder meetings. I have a meager amount of Aeroflot shares, but it was this vote that gave me a reason to study the procedure for its conduct, to know in the future, how to do it.
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