I’m not alone in my frustration with Computershare’s inefficiency. Despite spending hours on their online registration process to ensure dividends would be directly paid into my bank account in euros (with additional charges), the latest dividend arrived more than a fortnight past its due date and came in the form of a US dollar cheque. Pointless as it seemed, I refrained from lodging a complaint with the company based in Providence, Rhode Island. Is anyone making sense of their operations?
It’s encouraging to witness the escalation in share price, but the dividend confusion needs sorting. — Mr J.P.
Regrettably, I must confess that, much like you, I had almost given up on expecting CRH to acknowledge the existence of these issues.
That was until Richie Boucher, the group’s chairman, unexpectedly made a public apology regarding the problems with the administration of their US share register. This came after the group relocated its main listing to New York the previous year.
Addressing the group’s annual meeting in Dublin recently, Boucher acknowledged the frustration and issues experienced by certain shareholders. “We regret to hear about your disappointment. We deeply apologise for this situation,” Boucher mentioned. Furthermore, he added that CRH has been actively interacting with its US share registrar – Computershare, urging them to resolve the ongoing issues for affected investors, as per the recorded details of the meeting.
However, the matter was only addressed when a few small-scale shareholders attended the event specifically to reproach the company executives for their mistreatment. CRH would have earned more respect had they raised the issue themselves.
Post the meeting, CRH CEO Albert Manifold admitted regretfully that a “small group” of shareholders had encountered difficulties and issues. He reiterated the company’s apology for the troubles.
CRH stated that the “problems” resulted in a “tiny fraction” of investors being impacted by US tax deductions on dividends and receiving payments in US Dollars. While the company’s ongoing disregard of the problem may appear inconsiderate, it is perhaps merely a case of misjudgement.
CRH decided to base itself in New York for numerous valid reasons, including hoping to improve the liquidity and valuation of its shares with access to the largest fluid markets. The company also speculated it would be advantageous in terms of bidding for projects in the US.
The move was a significant effort, both corporate and practical, and was undoubtedly a complicated task for the company’s investor relations team, who had to transition the stakes of thousands of investors to a new regulatory framework in a short period.
While it is unclear whether they anticipated difficulties, it is likely they should have prepared for some.
After Aviva’s re-entry into the Irish health insurance sector, it was stated that this news promises benefits for customers.
Considering the vast number of shareholders, the amount of those who have expressed dissatisfaction can be seen as ‘minor’. However, counting only those who have expressed their concerns, the numbers are likely greater than CRH’s description suggests.
From their viewpoint, the problems were certainly not ‘minor’, and many individuals felt they were simply being dismissed by the company and by Computershare.
It was noted that some shareholders were informed that issues regarding CRH shares were being addressed in America, resulting in a lack of assistance from call centre staff. Meanwhile, one shareholder accused Computershare’s live chat of not having access to CRH share details, making the service unhelpful. The most common grievance was towards CRH refusing to communicate with shareholders, and instead insisting they interact exclusively with Computershare.
Responding to Computershare’s disappointing handling of their shares, one shareholder detailed: “CRH should be responsible. They have failed to address this issue effectively.”
Undoubtedly, some individuals may have made mistakes when filling out their forms. However, I firmly believe that the main issue originates from Computershare’s incompetence in handling the transfer of all Irish retail shareholder holdings efficiently and in totality. This contention also applies to those who experienced issues while registering with Computershare in the United States for managing their investment issues, despite adhering exactly to the instructions provided.
It is clear that CRH possesses the necessary corporate strength to ensure that Computershare concentrates on fulfilling its assigned task. According to Mr Manifold, they are doing their best to remedy the prevailing issues.
Time will tell, as apologies are quite easy to give. The real test will be whether I receive any complaints about the CRH dividend cheques in the future.