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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Green Initiatives

Rohan Chemicals Ltd's board is considering a green initiative to move shareholder communication to electronic mode. The Company Secretary advises on implementing it while protecting shareholders' interests. Which advice is most consistent with sound practice?

The CS should maintain members' email details, send documents electronically and still give hard copies to members who ask for them. Green initiatives encourage electronic communication, but shareholder rights to receive documents in physical form on request must be respected, so blanket withdrawal of paper copies is wrong.

  1. AStop sending physical copies to every member, including those who have asked for them, to save costs
  2. BCollect and update members' email addresses, send documents electronically, and still provide hard copies to members who request themCorrect
  3. CSend documents only to the email addresses of directors
  4. DDiscontinue annual reports entirely once a website is available

Explanation

Electronic delivery is encouraged, but members who request physical copies must still receive them. The CS should maintain email records and encourage registration. Denying requested copies or restricting delivery to directors or dropping reports would breach shareholder rights.

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