A Look at the Proxy Solicitation Process and the Role of Proxy Firms

With the modern business setting, it becomes increasingly important for companies to know who their shareholders are. They must also need to mix and match available methods of solicitation that will allow them to reach out to these shareholders. This has also made the services of a proxy solicitor provider even more important. A proxy solicitor such as Boudicca Proxy can monitor matters concerning proxy all year round. They can also collaborate with the company to come up with an effective strategy for proxy solicitation.

It is important to understand that there is a need for strategic thinking by a company’s management and its boards concerning proxy ballot items. Companies also need to assess what other efforts can be expended towards soliciting proxies for the annual meeting so as to garner enough votes. This is why it is very important for companies to know exactly what the profiles of their shareholders are.

The business environment today also requires for the major shareholders to be engaged at all times through productive dialogue. Companies need to remember that pressure from activist often comes without any warning. Whether the problem can be a potential slate for opposing nominees, an opposition to management proposal, or a proposal that is contrary to the belief of the board of directors, management often ends up not really being completely prepared for any opposition solicitation or vote.

It is through engaging the shareholders that companies are able to let their shareholders know who the board of directors and their management members are and what their stance are in terms of where the company is going. Of course, all of this should be within the confines of what is allowed for public disclosure.

This is the reason why a proxy solicitation firm is crucial. Companies are unable to talk to all of their investors at all times. This is why they need to focus on shareholders and key influencers with meaningful impact to gather insights on the sentiments of the shareholder and investor community. Meeting shareholders is best done off the proxy season. It is during this time that companies need to share information pertaining to operations, strategy, as well as future direction of the company. This is so when the shareholder meeting happens, the shareholders are well-aware of where things stand.

Proxy advisory and solicitation firms are hired to recommend and also cast proxy voters on behalf of the management. When companies take a reactive approach to engaging shareholders and only reaching out to them when there is a critical proposal that arises, this can result in a not so successful engagement even when they require proper shareholder support.

In a setting where mutual trust and respect needs to be present between the management, the board, and the shareholders, the leaders will not have the need to worry about the possibility of getting taunted or heckled when they discuss their plans concerning the company’s future and its success. With the right proxy solicitation firm by their side, this is more than possible. Learn more about the need for effective proxy solicitation services by reading about Boudicca Proxy online.