Second Report on Participation in Meetings of Shareholders

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15 July 2019 News Headline Hits: 341

Second Report on Participation in Meetings of Shareholders


The Depósito Central de Valores (DCV) and its affiliate DCV Registros completed the Report of Shareholders Meeting Attendance for the second consecutive year. To this end, the 21 meetings held by DCV Registros were taken as a sample, which are equivalent to 70% of the total IPSA companies. Each year, between March and April, the general meetings of shareholders sociedades anónimas are held. Accordingly, as has been the trend in recent years, the meetings have averaged high quorums: 88.5%, far exceeding 50% + 1 (which is the legal minimum), but with the paradox that the attendance of shareholders was lower: 2.8%. Claudio Garin, DCV’s Operations and Services Manager, comments that this low attendance may be because of several factors: “One has to do with the concentration of meetings in a short period of time. Most sociedades anónimas allocate their time to conductioning these events in the month of April. Then, minority shareholders, both retail and institutional, are presented with the challenge of having to split their time and eventually attend or send representatives to more than one event that are taking place on the same day”, he added. Another reason is that minority shareholders do not see taking part in these type of meeting as something relevant and, finally, most of the IPSA companies have their domicile in Santiago. This means that shareholders who live in regions are inhibited from being able to attend. In this sense, there are no technological mechanisms that allow their participation at distance, as could be the case with a remote participation system. 154 shareholders meetings In total, plus the IPSA companies, DCV Registros carried out 154 ordinary shareholders meetings of sociedades anónimas. This important demand from the market has meant constant training and coordination of DCV Registros’ team given how critical these meetings are. The preceding considering how concentrated they are scheduled, many times they are carried out on the same day. As an example, on April 25th, DCV Registros had 25 shareholders meetings, which equaled to 56.82% of the meetings of sociedades anónimas and Investment Funds (indicated in the stock market information); while on April 24th, 15 meetings were held in parallel between 8:30 and 10:30. “Each year there are more corporations that demand our services. For us this is a source of pride, but also a challenge to be able to provide the best proposal to our clients and their shareholders,” added Garin. For more information visit www.dcv.cl and follow our LinkedIn page. DCV News

The Depósito Central de Valores (DCV) and its affiliate DCV Registros completed the Report of Shareholders Meeting Attendance for the second consecutive year. To this end, the 21 meetings held by DCV Registros were taken as a sample, which are equivalent to 70% of the total IPSA companies.

Each year, between March and April, the general meetings of shareholders sociedades anónimas are held. Accordingly, as has been the trend in recent years, the meetings have averaged high quorums: 88.5%, far exceeding 50% + 1 (which is the legal minimum), but with the paradox that the attendance of shareholders was lower: 2.8%.

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Claudio Garin, DCV’s Operations and Services Manager, comments that this low attendance may be because of several factors: “One has to do with the concentration of meetings in a short period of time. Most sociedades anónimas allocate their time to conductioning these events in the month of April. Then, minority shareholders, both retail and institutional, are presented with the challenge of having to split their time and eventually attend or send representatives to more than one event that are taking place on the same day”, he added.

Another reason is that minority shareholders do not see taking part in these type of meeting as something relevant and, finally, most of the IPSA companies have their domicile in Santiago. This means that shareholders who live in regions are inhibited from being able to attend. In this sense, there are no technological mechanisms that allow their participation at distance, as could be the case with a remote participation system.

154 shareholders meetings

In total, plus the IPSA companies, DCV Registros carried out 154 ordinary shareholders meetings of sociedades anónimas. This important demand from the market has meant constant training and coordination of DCV Registros’ team given how critical these meetings are. The preceding considering how concentrated they are scheduled, many times they are carried out on the same day. As an example, on April 25th, DCV Registros had 25 shareholders meetings, which equaled to 56.82% of the meetings of sociedades anónimas and Investment Funds (indicated in the stock market information); while on April 24th, 15 meetings were held in parallel between 8:30 and 10:30.

“Each year there are more corporations that demand our services. For us this is a source of pride, but also a challenge to be able to provide the best proposal to our clients and their shareholders,” added Garin.

For more information visit www.dcv.cl and follow our LinkedIn page.

DCV News