With the launch of a new online service to make it easier for investors to exercise their shareholder rights, AJ Bell has simplified the process for platform users who want to vote in annual general meetings (AGMs). Following in the footsteps of Interactive Investor, which launched a similar system in 2021, it’s an overhaul that will hopefully increase shareholder engagement.
AJ Bell platform users can now vote electronically in shareholder meetings, including company AGM and EGMs, for any UK or international trusts and shares that they hold. Previously, customers wanting to participate had to send AJ Bell a secure message instructing the platform on how they wished to vote. Customers will now receive an email alert if any of their holdings have an upcoming vote, and they can then place their voting instructions via the platform.
While increased access like this is important for shareholder democracy, as well as helping promote corporate governance, statistics show the take-up of voting among retail investors has dwindled in recent years. The rise in investors using platforms is largely to blame. When you invest via a platform, your money is held in a nominee account and as a result you are not considered a registered shareholder. Because of this, you are reliant on the platform to notify you about any changes. However, there is little incentive for providers to make the voting process easier, given the administrative burden involved.