As a shareholder I have attended many of these meetings of some of India’s largest companies, I have quickly learned that shareholders’ questions have little to do with family squabbles, succession policy, ill-advised acquisitions, or unflattering media reports.
Instead, they usually range from pleas for factory visits and bigger dividends to the quality of the snack served at the meeting. A few will ask about the cost of printing the annual report, and offer up suggestions for new advertising campaigns or congratulatory verse on the company. Rare is the instance when shareholders pose tough questions, let alone dissent.
In Indian we don’t have enough large shareholder associations that watch and exercise control over corporate and moreover older small investors are culturally very tied to the company, and are not given to criticism.
Shareholder activism can be exercised through proxy battles, publicity campaigns, shareholder resolutions, litigation and negotiations with management. We can use one or all of them but certainly we cannot do that individually since that is no more then a futile attempt.
Lets hope for the best
Satyakam Mishra
reachsatyakam@gmail.com
http://equityconnect.blogspot.
Instead, they usually range from pleas for factory visits and bigger dividends to the quality of the snack served at the meeting. A few will ask about the cost of printing the annual report, and offer up suggestions for new advertising campaigns or congratulatory verse on the company. Rare is the instance when shareholders pose tough questions, let alone dissent.
In Indian we don’t have enough large shareholder associations that watch and exercise control over corporate and moreover older small investors are culturally very tied to the company, and are not given to criticism.
Shareholder activism can be exercised through proxy battles, publicity campaigns, shareholder resolutions, litigation and negotiations with management. We can use one or all of them but certainly we cannot do that individually since that is no more then a futile attempt.
The Securities and Exchange Board of India did consider at one point of time the Primary Market Advisory Committee's recommendation to introduce a uniform face value system for all listed companies. At present, companies decide their individual face value between Rs 1 and Rs 100.But regrettably nothing came out of it. I hope to see some action on this.
Satyakam Mishra
reachsatyakam@gmail.com
http://equityconnect.blogspot.
Binani Metals Limited has gone one zero more in the face value of its share .( Rs. 1000 )
ReplyDeleteCompanies ( under Go Green ) as registering e mail addresses of share holders for sending Annual Reports etc.
ReplyDeleteVery Well
BUT companies should also let the shareholders vote , through Internet ,in AGM s / EGM s etc. through similar email Registrations.