SEC may allow web-based shareholder activities

The US  Securities and Exchange commission (SEC) is planning to allow and encourage shareholders to communicate on-line. The change is aimed at both the companies and investors, with companies expected to save millions by replacing all annual reporting and voting papers they mail out each year to shareholders with electronic reporting systems on-line via corporate websites. Likewise this same plan will effectively allow shareholders the right to communicate with each other on-line (presumably via the companies own public websites) and more importantly allow dissident shareholders to get their message across to other stock holders at minimum expense.

SEC chairman is reported as saying that such decreased costs may improve corporate governance by increasing management’s accountability and responsiveness and at the same time provide shareholders with increased power to direct corporate policy.