Friday, August 10, 2007

Where's My Munchies Dude?

Read a fantastic news article posted on Business Times:

  • Shareholder watchdog: Forget the food, protect your rights
    By Chong Pooi Koon

    August 10 2007

    SMALL shareholders need to be united so that their voice can be loud enough to be heard, a watchdog group said.

    Minority Shareholders Watchdog Group (MSWG) chief executive officer Abdul Wahab Jaafar Sidek and head of client services Lee Leok Soon - who have both attended over 200 shareholder meetings - observed that retail shareholders often come to meetings without a clear objective.

    Citing the example of FCW Holdings Bhd, Lee said the company's annual general meeting recently should have been adjourned after the chairman was absent from the meeting for two years in a row.

    "But some shareholders disagreed with MSWG's call for the meeting to be adjourned, simply because they were attracted to the food provided outside," Lee said, "That's ridiculous!"

    He said some unscrupulous directors may take advantage of such situations if shareholders are not united.

    In some cases, he said, directors who are not running the company in the right way need to be removed, but minority shareholders have to come together to get sufficient numbers to pass or block resolutions.

    "Don't be attracted by the food, that's not important - dividends from a well-managed company are," Lee said, reminding small investors to attend shareholder meetings with a clear investment agenda.

    MSWG yesterday held a retail shareholders' dialogue in Kuala Lumpur to discuss the way forward for the group.

A well-managed company!!!! That's so rather crucial from an investor point of a view yes?

Remember as an investor, you are a part owner of the company. As a part owner, it's simply imperative that you want to be invested in a company that's well managed.

Well here's the thing for me, if the company isn't well managed, why stick around for the agm? Shouldn't one have VOTED WITH THEIR FEET long ago?

Just mumbling out loud ya.

Hey, where's my munchie dude?


Warren Buffett the 2nd said...

A more practical solution; dump the share, look for better one :)