AGM Meetings in Asia

The Star Malaysia reported yesterday that shareholders in Singapore come to AGM meetings not to learn about the performance of a company in the past quarter or other relevant changes that took place in the company, no, they come for the food. And the come prepared - rushing out of the meeting the moment the doors to the buffet is open.

And those shareholders have their favourites: Seafood items go first - good staff like king prawns, lobsters and smoked salmon - followed by chocolate cakes, puddings and mango tartlets. Last goes cheaper items, that everyone can easily afford, like sandwiches or noodles.

We were shortly thinking that to be an owner of shares would be an easy way to get through the year with your food supply secured - just buy a share in each company and you will be invited often enough for real good food. Problem? Well, AGM's only take place every quarter or so, so something in between is missing.

It is easy to complain about corrupt companies in the US but then, there, shareholders wake up and punish the companies and the CEOs etc, by selling the shares. Is there shareholder activism in Asia? Well, there is, in Hong Kong. Proton's shareprice fall last Friday quite heavily as shareholders sold off the shares, after hearing about the alleged appointment of the former Prime Minister Mahatir in Malaysia as advisor to Proton, without stronger involvement of the Board of Directors.

Is this a sign of change? Or is change in Asia more real in actions such as initiated by Lafarge Malayan Cement that might take away with food in their upcoming AGM on May 12, and just serve coffee or tea.

(By Asia Business Consulting)