Shareholders: It’s your time!
Mohamed Isa
Boosting Productivity & Sales for Industry Leaders through Customized Keynotes | 24+ Years of International Business Experience | Award-Winning Speaker | Bestselling Author | Coach | CFO | Board Member
When I published “A Review of Investor Relations Practices in Bahrain” in 2010, I advocated that shareholders should be more active during the Annual General Meeting (AGM). They should not blindly sign blank proxies for their votes on the Agenda Items.
To uphold your rights as shareholders, you need to start attending the AGM. You can hold both the Board of Directors and the Executive Management responsible for their actions and decisions during the year. This will make the Board and Management place the interest of the shareholders front and center.
I was pleased to see this news clipping from a local newspaper that roughly translates to the following:
“The Annual General Meeting (AGM) witnessed a glitch when a shareholder – Ali Turaif – submitted a write up consisting of 10 pages to clarify matters pertaining to Meeting Agenda Items. There was a debate on how best to address these queries during the AGM. However, the Executive Management agreed to address the queries when the AGM is over. They proclaim that receiving questions in this manner was not as per the customary practices of AGMs in the Kingdom.”
Here’s my quick take on this:
1) It is great to see that shareholders are beginning to be more active during AGMs. And I hope this trend would continue. As shareholders, you need to scrutinize the documents of the AGM. Study them. Analyze them. And perhaps, question them. Also, do not wait until the year end, you should monitor the quarterly results and the press releases in the local press and on the bourse website.
2) Publicly-listed Companies, open the channel of communication between you and the shareholders. They should be able to submit their queries about the Financial Statements and the relating notes throughout the fiscal year. On your website, provide the name of your Investor Relation Officer (IRO) and his/her contact details.
3) The Chief Executive Officer (CEO) and the Chief Financial Officer (CFO): You should be ready for the questions from the AGM floors. Prepare early on. Brainstorm on the potential questions from the shareholders. Enlist the help of the External Auditor, Compliance Officer, and the Chief Internal Auditor in your preparation.
Shareholders, it’s your time to be more active. Your activism will positively drive the corporate behavior of public companies more than any other force.
Mohamed Isa is a Business Advisor, an Award-Winning Speaker & 4-Time Amazon Bestselling Author.