22 | capitaregistrars.com

THE BIG DEBATE

Capita Registrars as to when we should consider preparing for the change.

What do you see as the key benefits for you and your shareholders? Which of these is most important to

you as a company? In order of importance, I would say electronic payment would be administratively easier for the company, more secure for both the company and its shareholders, would save on cost for the company and be more convenient for shareholders.

Have you come under any pressure from shareholders to reduce the use of paper generally?

No, but shareholders voted in 2007 to allow web- defaulting for company communications, which was introduced in 2009, so it is the next logical progression.

If you were to stop using cheques for dividend payments, would you also review how you distribute

tax vouchers? We would be guided by Capita but yes, if it was logical to consider switching associated systems and services at the same time, or following a move to electronic payment of dividends.

How do you expect other companies to approach the issue and will market trends have any impact on

your own decisions? We think there will be a slow but steady move towards alternative dividend payment methods. We will monitor the situation and discuss with Capita when it is propitious to prepare for, and then make the change.

We believe that this will allow our

shareholders to receive their dividends promptly,

reduce cost for our

shareholders and reduce risks for both the shareholder and the company

The utility giant

PHIL HIGGINS

Assistant Secretary National Grid plc

What’s your current view about removing cheques for dividend

payments? Have you made any moves to prepare

for it? We believe that payments direct into shareholders’ accounts is a much more efficient and safe method of dividend payment. Over 500,000 shareholders in National Grid currently do this and we encourage more to do so. We also offer a scrip dividend allowing more shares to be taken in the company rather than a cash dividend. We are not yet at the position of requiring payment without cheques but believe that society in general is moving in the direction of limiting the use of cheques as a method of payment. We also note the proposals for dematerialisation of shareholdings and envisage that the two issues might be complementary.

What do you see as the key benefits for you and your shareholders? Which of these is most important to

you as a company? There are cost savings to the company but also payment direct into a bank account has benefits for shareholders – the dividend is received on the date of payment, there is no risk of it being lost in the post or needing to be reissued if it wasn’t cashed within 12 months of issue.

Have you come under any pressure from shareholders to reduce the use of paper

generally? We have undertaken a programme of reducing the amount of paper used for shareholder communications, whilst offering the shareholders the opportunity to continue to receive paper copies if they so wish. Shareholders have welcomed these initiatives and the response has been positive. We have so far more than halved the amount of paper used for the annual report mailing since 2007 and will save over 100 tonnes of paper and associated energy and water use this year.

If you were to stop using cheques for dividend payments, would you also review how you distribute tax vouchers?

We currently use consolidated tax vouchers where possible and encourage electronic tax vouchers via the website – and we are looking at extending the

availability of this service. We would consider the options at such a time as cheques were stopped.

How do you expect other companies to approach the issue and will market trends have any impact on

your own decisions? We would consider best practice in this area, bearing in mind the size and composition of our share register. We expect that smaller companies, banks and those with large corporate-sponsored nominees will lead this debate.

SPRING 2010 Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32