A Draft Code of Conduct for Company Meetings & Presentations

Meetings with and visits to companies are a valuable benefit of being an UKSA member. For many of us this is the main reason for joining. Otherwise how often does one get to talk to directors and senior management. Certainly not at big cap stage managed agms. Although some companies regard communication with private shareholders as a rather irritating but necessary PR exercise, most companies positively welcome visits from UKSA. Company directors have often told us, that questions and suggestions from the actual owners of the company are a useful supplement to the usual concerns and questions they get from analysts and institutional shareholders.

We should however always bear in mind that unlike agms or egms, we don't have a legal right to attend private briefings or site visits. Even as substantial individual shareholders we are lucky to get past the reception desk, particularly at larger companies. As UKSA members we are privileged guests, and only get in because we are members of a respected organisation and are taken seriously.

This brings me to the matter of conduct at these company meetings. The vast majority go well and companies often take the initiative in asking us back. As one would expect UKSA members are well-informed sophisticated investors who ask pertinent questions and are impeccably well mannered. However on rare occasions in the past some members have conducted themselves in a less than professional manner. Anything perceived by our company hosts to be less than expected good conduct is likely to diminish respect for us as an organisation and therefore result in fewer invitations and less influence. So hopefully without appearing to be patronising here is a suggested Code of Conduct for Company visits and presentations. Most of which is perhaps blindingly obvious to experienced attendees but might be particularly useful to members who haven't attended a presentation before.

1. Some visits get fully booked, resulting in a waiting list. Yet some people who are booked don't show up. Always notify the organiser asap if you can't attend so that someone on the waiting list can.
2. Organising a meeting takes a lot of time and effort and invitations often depend on the organisers personal contacts with the company. So always follow the organisers instructions.
3. There will usually be an Investor Relations person fronting the company staff so always follow their instructions regarding refreshments cloakrooms etc and address any follow-up requests for info or personal problems with share registrars etc. to them not the CFO or CEO.
4. Dress according to expectation, usually formal or smart casual. Jeans and boots might be ok for a site visit to an engineering company but not for a city financial..
5. Most hosts will at least layout some coffee and biscuits. Some will provide a quite lavish lunch. Whatever is on offer is much appreciated, but we are there for the meeting not the refreshments (aren't we?). So don't be cheeky and complain if there is no free lunch or booze. And don't ask for or fill up a doggy bag! (This actually happened at least once!)
6. Remember that these company visits are usually Analyst Style Presentations. This means that they usually follow a format of: a presentation by one or more senior managers or directors followed by a Q&A session. There is usually an opportunity to meet informally afterwards over coffee or lunch, after the presentation. There may also be a site visit to a trading floor or workshop if appropriate. Although they are Analyst Style the company will not be expecting exactly the same sort of interaction from us. They realise that private investors may have different concerns and expectations to institutional professionals. Usually questions are taken after the presentation, but not always. Always respect the wishes of the presenter on this.
7. Regarding the actual 'questions'. Remember that these are not agms; which can often turn into free for all slanging matches, platforms for personal vendettas and special interest groups, not to mention a pulpit for 'Disgusted of Tunbridge Wells' who always shows up in person and reads out the 10 page script he has been working on all year. Some suggested Q&A guidelines:
   • Do some homework on the Company before the meeting so that you don't end up asking silly questions e.g. "What do you actually do then?"
   • Don't become aggressive. It's possible to ask difficult questions and make negative points without becoming confrontational. Keep the exchange civilised.
   • When you ask a question by all means follow up with a secondary or comment but then leave it at that. Don't get into an argument.
   • Don't monopolise the time. Some of us like the sound of our own voices but there might be someone else at the back that has an equally relevant point to make.
   • Don't personalise the issues. If it's a problem that affects only you, ask whom to contact after the meeting.
   • Don't become obsessive. Most of us have strong views on one thing or another whether it be share buy-backs, accounting standards, gearing or directors pay. Most of these issues have been worked over many times before. So ask your question or make your point and leave it at that. Don't preach.
8. Unless the Company staff clearly want to go on talking after the meeting don't outstay the welcome by hanging around too long. They are busy people. If you want to have a mini UKSA meeting afterwards, adjourn to the nearest coffee shop or bar.