Several of our clients have now advanced the position, that if they have allowed for electronic delivery in their new MOI;
- They can then issue a written notice to shareholders saying that the annual report is available online and that the report in print format will only be delivered to the shareholder should they request in writing or via electronic means.
A: Your sponsor needs to approve the electronic delivery strategy in the context of the companies act sections 6(10) and 6 (11).
B: Your sponsor can then apply to the JSE for a ruling in terms of the listing requirements. The JSE’s apparent position is that they will review this on a case-by-case basis:
Clearly there will be huge savings from this process, it would be interesting to gauge your sponsors view on the above.
To prepare for this new environment, that appears to inevitable, we have put in place the following: –
Print reports on demand
Working with Hirt & Carter, SA’s premier digital printer, we have established a ball park price of approx R400 – R750 per printed report (volume dependent) for those shareholders who actually request a printed copy.
Electronic delivery environment
- Copy and paste to issue alerts to all your registered users
- Alerts, calendars and events grouped for user
- One-click registration for events
- Shareholders verified against register and can accept electronic delivery
Latest update from the JSE:
Section 3 and the appendix to Section 11 the listings requirements state ““distribute to all holders of securities”. Distribute is defined as “the delivery of notices as provided for in terms of Section 6(10) of the Act and/or delivery and/or notification of documentation in terms of Section 6(11) of the Act”.
Companies have to comply with the Companies Act in terms of the Listings Requirements. The use of electronic means is not mandatory and therefore an individual choice for each issuer in consultation with their sponsoring broker/DA. I imagine that the shareholder demographics would be a matter for consideration.
However, this must not be confused with submission to the JSE – these have to be electronic; even though an issuer has distributed hard copies to shareholders.
Kindly be advised that the Companies Act is changing with effect from 1 May 2013 to address conflicts between MOIs and the Companies Act.
It may also be a good idea to be familiar with arrangements with Strate, especially where shares are held through a nominee company.
For more information please contact Oliver Hoffmann on email@example.com