This guide is intended to help with everything you might need to know about being a shareholder. You may also find it useful if you are considering investing in Royal Mail Group or are an existing shareholder.
What does being “listed” on the LSE mean?
A “listed” company may have its shares bought and sold on an open market. Many countries have their own markets or stock exchanges. Royal Mail shares may be bought and sold on the United Kingdom’s principal stock exchange, the London Stock Exchange’s main market (LSE).
What is the role of the board of directors?
The board of directors is the decision-making body legally responsible for overseeing the management of a company. In a listed company, such as Royal Mail, the directors are elected by the shareholders. The board of directors is comprised of:
- executive directors, who are full-time employees of the Royal Mail and are generally responsible for managing the day to day business of Royal Mail
- non-executive directors, who are not employees of Royal Mail and do not hold executive offices. Non-executive directors usually carry out their duties on a part-time basis and fulfil independent advisory or supervisory roles.
What is an annual report?
An annual report is a document issued once a year by a company to report its financial position. Annual reports normally include the company’s accounts, a statement of assets, liabilities and recent earnings, a description of business operations, and a comment on the outlook for the future. Companies are required to make available an annual report to all shareholders.
What is a registrar?
A registrar is an organisation that keeps a record of individual shareholders and information such as dividend payment dates. Registrars are increasingly offering online services to meet the demands of companies and shareholders for efficient communication. Royal Mail has appointed Equiniti as its registrar.
What is an AGM?
AGM stands for Annual General Meeting, which Royal Mail is required to hold each year. Every year Royal Mail’s board of directors invites its shareholders to attend the meeting. During the AGM, shareholders have the opportunity to vote on key matters and may also use the AGM to ask the board of directors questions about the business.
How can I find out about the AGM?
Shareholders are automatically notified about the AGM each year. Depending on the choices made, shareholders will either receive a hard copy of the Notice of Meeting or will be notified either by post or by e-mail when the documents are available for viewing on Royal Mail’s website.
What is discussed at an AGM?
At the AGM there is a presentation of Royal Mail’s performance over the previous financial year and shareholders are given the opportunity to vote on key issues such as final dividends and the re-election of directors. Shareholders are also given the opportunity to ask the directors questions relating to the business of the meeting.
When published each year, documents relating to an AGM can be viewed, along with other information about the AGM, on the AGM page.
What is a dividend?
If a company makes a profit, the directors may decide that the company should distribute a share of the profits to shareholders in the form of payments called dividends. If a company does not perform well, this may lead to its dividends being reduced or no dividend being paid at all.
How are dividend amounts set?
After a set of results have been announced, the directors review the company’s performance and financial position, and determine whether or not a dividend should be declared, and if so, the amount of this dividend.
What is the difference between an interim and final dividend?
A company may pay dividends at different times over the year. The final dividend is based on the full end of year results and is subject to shareholder approval. The interim dividend is based on half-year results. Royal Mail will normally pay:
- any interim dividend in the months following the publication of its half-year results
- any final dividend in the months following the announcement of its full-year results
How are dividends paid?
Dividends are usually paid in cash. Lost dividend cheques can be re-issued. You may obtain a replacement cheque simply by contacting our Registrar.
> Registrar Information