Responsibility for Shareholder Relations

The chairman of the board and president of a corporation, who are responsible to the owners, should have general direction of a shareholder relations program.

Corporations with a limited number of stockholders designate the secretary or clerk of the corporations to be responsible for communicating with stockholders, arranging for the annual meeting, reporting the proceedings, and handling all stockholder affairs.

However, corporations with a large and increasing number of shareholders assign responsibility for stockholders relations to a public relations staff, which works closely with the secretary and other corporation financial officers in planning communications.

To secure effective coordination, financial officers and a public relations staff constitute a stockholders relations committee.

In large corporations, a stockholders relations section is established in the public relations department under the direction of a stockholder relations manager who reports to the public relations manager.

Many corporations retain outside counsel to advise and assist internal shareholder relations staffs in planning and executing shareholder relations program.

 

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