Securities laws mandate what shareholder communications are sent to you.
For Canadian companies, shareholder communications are regulated by a National Instrument 54 – 101. Investors, under this policy instrument, have some options as to the release or non- release of their names as beneficial owners of a security, and some options as to being sent all, none or only important shareholder communications.
Shareholder communications from foreign companies are mandated and regulated by authorities in those foreign jurisdictions. Foreign companies may send Canadian shareholders whatever they choose to – largely regardless of what options a shareholder has chosen when completing the Canadian shareholder communication response card. This is particularly true of U.S. companies, which, under U.S. regulatory practices, tend to proactively send shareholder information as a precaution against charges of lack of adequate or fair disclosure to their investors.
Should I request to receive none, all, or only important shareholder communications?
Choosing the option “I want to receive only proxy related materials” means you receive information on significant special meetings that may be held by the company. This seems prudent.
Choosing “I want all security holder materials sent out” accomplishes the above, but opens up the possibility of unwanted volumes of mailings.
Choosing “I decline to receive mailings” is unwise – this might block important proxy mailings to you.
Should I disclose that I am a beneficial owner of a security?
Probably yes. The volume of mail you might be sent is controlled by the above options on receiving communications – not by this disclosure question. Not disclosing your name simply means you might be charged mailing costs, rather than having the company pay for the mailings.
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