CMM Launches New Shareholder Comm's Service

CMM Group, the transactional, marketing and shareholder communications company, is to launch its new multi-media shareholder communications service, in early 2007.

CMM Group, the transactional, marketing and shareholder communications company, is to launch its new multi-media shareholder communications service, in early 2007.

The new service from CMM is meant to accommodate the changing investor communications requirements that have just been fast-tracked by the UK Government for 2007 implementation.

CMM Group said that it is developing a multi-media communications service to help companies and their advisors take advantage of this new legislation.

The new service is claimed to allow shareholder records to be tagged with their communications preferences, as well as providing a secure environment for the hosting and management of that communications data and then the provision of a single service, which sends annual reports, proxy forms, interim reports and other mandatory communications in the investor's preferred medium.

The Government's new provisions in the Companies Bill on electronic shareholder communications will now come in to effect in January.

The new provisions enable companies to use the internet and e-mail as the default option in communications with shareholders.

Companies will only be obliged to send shareholders paper documents, such as annual reports and interim statements, when shareholders positively request a printed copy.

The provisions were previously scheduled to come in to effect with the main parts of the Companies Bill towards the end of 2008.

However, as a concession to the unexpected requirement on companies to include information on their supply chains within their business reviews, the Government has brought the ability to report electronically to shareholders forward to next January.

Yolanda Noble, the chief executive of CMM Group, commented: "This change in shareholder reporting has been on the cards for years.

That is why we are investing in a multi-media service.

As a trusted partner for many investor relations operations, we are in poll position to support their changing needs." She continued: "We do not, in fact, expect the majority of organisations to make the switch immediately.

Those with calendar financial year ends do not have time to do so and even those with fiscal financial year ends would be hard pressed to carry through the required shareholder resolution successfully and securely in the available time." And she added: "Additionally, there is the issue of capturing and securely managing shareholder emails.

Shareholders and the companies they invest in are generally unwilling to have email data as part of the public record and are planning to host this information securely and privately.

The brand damage of email abuse in this area could be potentially catastrophic for a listed plc." She explained that the Government's decision to fast-forward the electronic reporting element of the Companies Bill will have caught many company secretaries, investor relations professionals, designers and printers unawares.

And she concluded: "We feel it is our responsibility to be prepared early for the new multimedia IR world and to help companies and their advisors make the transition safely and securely.".

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