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Toronto, Ontario, Oct. 8, 2013 – Broadridge Financial Solutions, Inc. (NYSE:BR) today reported that during the 2013 proxy season, the first season following approval of the new Notice and Access initiative by Canadian securities regulators, more than 160 eligible Canadian corporate issuers have adopted the new process permitting them to mail a notice providing electronic access to proxy-related information on public companies’ websites in lieu of the traditional mailing to all shareholders.
Broadridge clients that adopted Notice and Access not only reduced postage and printing costs but also had the option to enrich shareholder engagement by providing online access to proxy-related information and electronic voting. Broadridge reported that 84% of all shares voted were cast electronically, validating the importance of the digital communication channel. On average, companies that adopted Notice and Access this past year maintained, or slightly increased, voting participation rates for retail and institutional shareholders.
“Digital communications is an increasingly important channel for our corporate issuer clients,” said Donna Bristow, Vice President, Client Management and Strategic Product Development, Investor Communication Solutions, Canada, Broadridge.
“Broadridge’s priority is to help our clients achieve higher levels of transparency, efficiency, and shareholder engagement. The introduction of the new Notice and Access solution is aligned with these goals, and we are uniquely positioned to support corporate issuers that want to take advantage of the option,” continued Bristow.
Broadridge conducted road shows and created a dedicated website, NoticeandAccess.ca, to better educate corporate issuers on their choice to use Notice and Access. As part of its continued support for corporate issuers in determining whether Notice and Access is right for them, Broadridge will conduct road shows in early November in Vancouver, Calgary and Toronto, and recently introduced a unique savings calculator for corporate issuers to use to determine estimated savings. Ms. Bristow added, “Our unique business model allows us to help clients navigate through regulatory changes such as Notice and Access in a way that enables them to enhance the investor choice model, and recognize savings while remaining focused on their core businesses.”
The National Instrument 54-101 and National Instrument 51-102 amendments took effect on February 11, 2013, and were applied to shareholder meetings held on or after March 1, 2013. The Notice and Access model removes the requirement for public companies to send shareholders a hard copy set of proxy materials. Eligible corporate issuers may instead deliver to shareholders a mailed “Notice,” and provide online access to the documents. Companies choosing the option to use the Notice and Access delivery model must give shareholders an ability to request a paper copy of the posted materials.
Download the 2013 Canadian proxy season report.