Shareholder Voting – Know your rights

Shareholder Voting – Know your rights

Nominee Accounts: Know Your Rights and Take Control!

Are You REALLY a Shareholder?

Think you own shares? If they’re in a nominee account, the answer might surprise you! When you hold shares via a stockbroker’s nominee account, you’re not officially a “Member” of the company— but a “Beneficial Owner.” That means you’re not on the share register, and the company doesn’t recognise you as a shareholder. Your broker is the one on the register, not you. But don’t worry—there are things you can do. Let’s break it down!


Why Does This Matter?

Being on the share register gives you:

  • Voting Rights: Have your say in company decisions.
  • Direct Access: Receive company updates and attend General Meetings.
  • Legal Protections: Get full benefits under the Companies Act.

However don’t panic, many share platforms are getting better with automated solutions providing some of the above so the need to be on the register is less, however when your shares are held in a nominee account, you can lose these rights so you will need to look into it and filter your options with the broking platform to get the control and insight you wish for.


Want to Attend General Meetings? Here’s How!

  1. As a Guest: Many companies let you attend as a guest, but you can’t vote or speak unless the Chair allows it (don’t count on it!). Check with the company—they’re often more flexible than you think and often have good presentations for you to watch. QuotedData has a list of shareholder meetings on its events page which is a good first port of call.
  2. Get Representation:
    • Ask your broker for a Letter of Representation.
    • Request a Proxy Appointment to vote on your behalf.
  3. Be Prepared: Bring your documents, and remember, a “show of hands” vote isn’t for guests. Voting cards help avoid confusion.

How to Cast Your Vote

Even if you’re in a nominee account, you can still vote. Here’s how:

  1. Broker services are getting better allowing you to submit your voting instructions online. They’ll tally the results and vote on your behalf. The AIC has a good page of what you can do on each share platform, and how they differ – hopefully your platform is listed there or you can explore better options. Failing that…
  2. Be Appointed Proxy: Your broker can assign you as their proxy, letting you vote directly.
  3. Request a Letter of Representation: Attend the meeting and vote in person.

Not all brokers offer these services automatically, so check with yours now to avoid disappointment when a really important issue crops up.


Nominee System Risks

Nominee accounts might seem convenient, and broking platforms are getting much better offering voting services, but they come with risks which should be labelled:

  • Disenfranchisement: You could lose your voice in how companies are run.
  • Legal Vulnerabilities: Your claim on shares isn’t as secure as you think.
  • Broker Issues: If your broker runs into trouble, pooled accounts can be messy to untangle.

Other ways to claim your shareholder rights (though are now less less common):

  1. Personal Crest Accounts: These give you all the benefits of being on the share register without paper certificates. Think of it as the digital-age solution!
  2. Own Shares Directly: Hold shares in certificated form to get your name on the register.

Hot Tip: Even owning one share directly can give you access to General Meetings and company update

Some organisations like ShareSoc are campaigning to improve shareholder rights, making it easier for retail investors like you to have your voice heard.


What You Can Do Today

  • Check Your Broker if their Voting and Notification Services are what you need. Many of the main ones have invested in their websites offering such as AJ Bell and Interactive Investor, which currently offer improved solutions. If yours doesn’t support voting and direct shareholder notifications, consider switching.
  • Take Action: Contact your broker about your needs and voting on your investments.
  • Stay Informed: The more you know, using sites like QuotedData, the more empowered you’ll be as an investor.

Being a shareholder is about more than just owning shares—it’s about having a say and being informed. Take control and make your investments work for you!