1) Shares are bought and sold in the London Stock Exchange. Buying and selling is carried out by a stockbroker as individuals cannot deal for themselves in the market. A list of stockbrokers is available from the Stock Exchange onO171 797 1372.Someofthesearecheaper than others. Good Value is oflfered by the Cater Allen Sharedealing Service who charge as little as £9 on commission fees. They can be contacted on 01708 775 210. Stockbrokers offer a variety of services but if you know exactly what you want, eg 10 shares in Lloyds TSB, simply call the broker for an 'execution only' service and ask them to buy the shares of your choice, S/he will not give you any advice, but will simply carry out your instructions and arrange for the deal to be settled
2) After having instructed your broker to buy shares, s/he will draw up a contract note note which you will receive within a few days. This will show details of the transaction carried out on your behalf
3) You must send payment for your shares immediately you receive your contract note. In June 1995 the Stock Exchange adopted a 5-day settlement system, under which transactions are due for settlement 5 working days after dealing.
4) Upon reciept of payment, the purchase is registered with the company whose shares you have bought and the company's registrar will issue a share certificate in your name. You are now the proud owner of a lucative portfolio.
5) At this stage you can distribute your shares amongst your friends if you wish. Contact the company's registra for a set of share transfer forms. Fill these in to allocate one share to each friend. You are now all entitled to attend the company's AGM.
Additional notes:
a) Organise in advance - do not leave it to the last minute before buying and
re-distributing shares. Your aim is to get as many dissident shareholders to
attend as possible.
b) Try and achieve some consensus about what you want to do once everyone is inside. Some groups prefer to ask structured questions, others prefer maximum disruption. You can do both. A pre-AGM meeting is advisable.
c) Expect tight security and to be searched. Cameras, camcorders, tape recorders etc will be removed if found. The majority of dissident shareholders are much younger than a typical company's 'long term' investors. They will know who you are. However, off~cial company policy usually follows the line that if you have a share, you are entitled to attend the AGM.
d) Be aware of the older, private investors. They can be extremely hostile. Something to do with predjudice and a guilty conscience?
e) Talk to the other shareholders, especially reps from the institutional investors. Just one sizeable disinvestment could make all the difference to the outcome of your overall campaigns.
Compiled by LAMB, with additional notes from Corporate Watch