The Bank of Russia and the Russian Ministry of Finance have issued recommendations for state-owned companies with publicly traded shares, urging them to strengthen communication with retail investors. The guidance focuses on promoting information transparency and protecting the rights of minority shareholders.
Regulators advise that, when making corporate decisions, issuers should consider the interests of retail shareholders who are seeking long-term stability, dividends, and share price growth. Companies are encouraged to participate in the Shareholder Value Creation Programme.
The recommendations suggest that issuers increase transparency by keeping minority shareholders informed about the company’s development strategy, operational and financial goals, and current performance indicators. This information should be communicated clearly, using visual aids, and included in annual reports, which serve as a primary source of information for investors.
Additionally, companies are advised to enhance their communication channels with investors and prioritize resources that offer broad reach and facilitate feedback. Besides traditional formats such as press releases and website sections, regulators recommend organizing meetings between management and shareholders, hosting conferences for minority investors, maintaining social media accounts and podcasts, and developing dedicated mobile applications.
The guidance also calls for issuers to involve retail investors more directly in company activities by allowing them to participate in management decisions, such as nominating candidates to the board of directors. Establishing a Minority Shareholder Committee is considered a good practice.
The Bank of Russia believes these recommendations will help set a new standard for communication between major issuers and their retail shareholders. According to the Bank, this will harmonize corporate practices, build investor trust, and support the growth of stock market capitalization.