AGM or Annual General Makan ?

a big money spanner scheme afoot?

so many irregular timing agm so solution build or appoint convention center with many large conference halls to host 1-2 agms everyday and enforce that all listed companies can only rent that conf hall to host agm activities. Subcontract buffet lunch to singapore food industries then issue attendees with food vouchers lunch bell ring everybody comes out to eat.

captive market 365

AGM is not an 'annual general makan'

Companies should focus on what matters to investors, not the buffet spread
Published on May 5, 2014 12:51 AM



By Goh Eng Yeow Senior Correspondent

MOST firms provide refreshments and snacks when shareholders make the effort to turn up for meetings but the lavish spreads some companies lay on are starting to spark bunfights of epic proportions.

Apart from the cost to investors of pushing the boat out, the get-togethers some companies stage at five-star hotels have raised claims that they inadvertently bring out anti-social behaviour among the many investors who attend.

A reader wrote to The Straits Times noting that the adjournment of an annual general meeting (AGM) he attended served as a starting gun, prompting shareholders to bolt out of their seats and make a beeline for the buffet spread in the adjoining room.

A mad scramble for plates and food ensued with some people even whipping out plastic containers and bags to pack the food to take home.

There is a further gripe: To cut down AGM costs, some companies restrict any meals to direct investors only. That means people turning up as observers because they are Central Provident Fund (CPF) or Supplementary Retirement Scheme (SRS) investors are reduced to a Cinderella-like state of watching everyone else happily tucking in.

This sort of discrimination is extremely upsetting for CPF or SRS investors because it implies they belong to an inferior class of shareholder, one who is there only for a free meal.

Reader Vincent Khoo wrote: "The irony... is that these CPF or SRS investors are actually using their own monies to invest in these listed companies. Because the law says that their shares have to be custodised with investment banks, the investment banks end up being the legal owners of these shares."

So whether a person attends as a direct shareholder or an observer because he is a CPF or SRS investor, he should get the same rights and benefits, including the meal, he added.

The Government is now putting in place changes to the Companies Act that would enable CPF investors to attend AGMs, ask questions and vote on resolutions. Banks will also be allowed to appoint more than two proxies to AGMs, thus giving SRS investors whose shares are kept with them the same rights.

A Ministry of Finance (MOF) spokesman said: "MOF is currently evaluating the feedback on the Companies (Amendment) Bill. The Bill will be tabled in Parliament in the second half of 2014."

The proposed reforms will put CPF and SRS investors essentially on the same footing as direct investors whose shares are kept in the Central Depository.

There are about 900,000 Singaporeans with CPF Investment Accounts and almost 92,000 SRS account holders.

So if even a small fraction of them turn up at AGMs, it would add to the administrative nightmare - not to mention the escalating costs - for companies that provide grand buffet spreads at their AGMs.

Part of the problem is that unlike at most functions where the turnout can be roughly estimated, there is no way for a company to tell how many investors are going to turn up at its AGM even though they are encouraged to register their interest beforehand.

What should companies do - disallow CPF and SRS investors who get proxies from their investment banks from the meal table as well?

The AGM buffet spread is a comparatively recent phenomenon - it made its first appearance in the past decade as the bosses of S-chips, as China-based firms listed here are called, threw bountiful feasts to lure investors.

Another observation is that not all AGM attendees are there for the food only. At OCBC's recent AGM, the gathering swelled to around 640 people as the board was peppered with questions over the lender's proposed acquisition of Hong Kong's Wing Hang Bank and the impact this would have.

Similarly, the DBS meeting ran to nearly two hours, as shareholders pressed the bank to give its mom-and-pop customers a higher interest rate for their savings and quizzed the board over the hike in directors' fees.

Surely, it is time to recognise that a strong shareholder culture is taking root in Singapore and there are many retail investors who no longer see their stock investments as merely a financial wager or a ticket to a free meal.

When the Singapore Exchange hosts its own AGM later this year, the timing may coincide with the implementation of the changes to the Companies Act to enfranchise CPF and SRS investors.

It should take the lead by doing away with the usual bento set lunch that attendees have come to expect and stick to offering refreshments and light snacks instead.

Companies should focus on what matters most to investors - their business game plan, shareholder return, corporate governance and performance - and not let their AGMs descend into an annual general makan.

engyeow@sph.com.sg

Making a meal of frugality

Habits of thrift may be hard to shake for an older generation born poor, but there's no need to go the whole hog either
Published on May 11, 2014 1:17 AM


Many young people who have grown up in relative comfort may have difficulty understanding the older generation's habit of thrift, especially when it comes to food, but there are lessons worth learning about austerity and moderation. -- ST FILE PHOTO

By Jonathan Kwok

The mad scrum for the free food at annual general meetings (AGMs) never fails to amaze me.

Those who have attended these gatherings know what it's like - investors make a beeline for the buffet table once the meeting ends, or even before that.

Out come the plastic containers for "takeaways". And if you are late, you won't get a morsel while the early birds will have enough food packed away to feed their extended families for the next week.

It has become so bad that some firms now distribute vouchers for bento boxes: one shareholder gets one voucher for one meal - no more, no less.

What's puzzling is that many of these folks attending AGMs appear to be able to afford nice meals at posh restaurants.

When covering meetings, I have sat next to middle-aged men and women who hold hundreds of lots of shares, as indicated on the hand-held sets that they use for voting.

Yet with hundreds of thousands of dollars worth of assets in just one counter, these investors have no qualms about rushing for the food line.

Many young people who have grown up in relative comfort won't be able to understand this mindset. While food is precious to baby boomers, many of my generation have a diametrically opposite attitude.

The fear is not of having nothing to eat but of putting on weight, so many of my peers are happy to throw food away to cut a few calories.

But if we remember the very different childhoods of the earlier generation, we can understand why they are loath to waste even a crumb.

My parents are happy to remind me that they mainly ate plain rice with soya sauce when they were young and got to enjoy a chicken drumstick only if they came first in class - a big incentive to study hard.

Fortunately most Singaporeans no longer face this reality, although there remains a large number of poor people who live from hand to mouth.

But attitudes towards money are hard to change.

Although they may have benefited from Singapore's growth over the past few decades, and amassed a sizeable pot of savings, baby boomers remain extremely thrifty.

Many people may continue to have insecurities about the future. They may doubt whether their savings are enough in the face of ever-rising costs and a social security net that is less comprehensive compared with Western societies.

This probably explains the behaviour at AGMs that younger people may find bizarre.

One ironic thing is that the type of people who should be worrying about money don't worry about it enough - people with credit card debt, for instance. Those who should not worry too much, like those rich retirees at AGMs, sweat too many buckets over it.

A similar theme was espoused in The Financial Times this month in an article by banker-turned-novelist Akhil Sharma.

Mr Sharma and his parents are first-generation immigrants in the United States. A difficult childhood became a nightmare when his elder brother Anup had an accident that left him with severe brain damage.

"Till then worry about money had, of course, been part of our lives. Now it turned into a sort of terror," wrote Mr Sharma.

"Not having money during a medical emergency is like not having oxygen. My brother's skin used to get dry in the heated hospital air and we couldn't afford US$4 for a tube of lotion."

After two years, his parents took Anup out of hospital and brought him home and began taking care of him. All the time money was a worry and there were many fights.

Mr Sharma later earned a lot of money as an investment banker but his money habits remained unchanged. He was "unable to accept the comfort money can provide", no matter how much cash he accumulated.

He received his annual bonus of several hundred thousand US dollars one wintry day, and found he needed a pair of gloves.

"Since I wanted to pay as little as possible, instead of going to a store, I began looking for one of those vendors who sell gloves, hats and umbrellas near subway stations," said Mr Sharma.

"For about a week, because I was leaving for work so early and returning so late, I didn't see one of these vendors and so I walked around the city with my frozen hands in my pockets.

"Not only was I unable to spend money to buy such simple physical comfort as a pair of gloves, I also found little value in the status that money conveys."

So what lessons can we learn from this?

First, money habits and attitudes are ingrained from our early years. Someone who grew up struggling financially will probably always have insecurities about money, even after he makes a fortune.

Conversely, a person born with a silver spoon in his mouth may never learn the value of thrift, even if fortunes turn against him.

Although it is harder to mould our attitudes when we are older, changes are still possible with effort.

Young people just starting out in the workforce should first and foremost learn to be thrifty. Your bud-get can increase when you earn and accumulate more money.

It can even be considered healthy later on to increase spending as your wealth rises.

You should also stop worrying about money beyond a certain point.

Money can be a major source of worry and disagreements and it's unwise to let it affect us too much.

At the very least, investors should recognise that they can afford a meal in a restaurant or at least a hawker centre, after the AGM. No point in jostling and scrapping with everyone else for those buffet leftovers.

jonkwok@sph.com.sg

When is the cut off date?
For example, if the AGM is scheduled on 21Apr2015, when it the latest date I have to buy the share under normal brokerage account to be eligible for the AGM?

(17-04-2014, 11:18 PM)chialc88 Wrote: kagemusha,
your share will be held under nominee account aka CPF or Bank (SRS).
For the case of StandChart, same thing-hold under SCB nominee account.

If you wanted to attend your company AGM, you must request CPF or Bank to register your name ASAP.

There is a quota and so please do not be surprised that you can not go because someone else already chop the seats.

Worst case scenario, if you really really wanted to attend, quickly buy some share under "normal" brokerage account (CDP lar), and you will be able to attend.
(mindful of the cut-off date for your purchase)

Love Compassion


A Life not Reflected is a Life not Worth Living.

(12-04-2015, 09:39 AM)lohkh Wrote: When is the cut off date?
For example, if the AGM is scheduled on 21Apr2015, when it the latest date I have to buy the share under normal brokerage account to be eligible for the AGM?

I reckon you are eligible to attend AGM, once the shares are credited into your CDP account, one day in advance of the meeting day.

The credit day should be T+3.

TQ, CityFarmer.
I have checked the circular from Penguin dated 10Apr 2015, paragraph 5 (pg23), ".... A depositor shall not be regarded as shareholder entitled to attend the AGM and to speak & vote there at unless he is shown to have shares entered against his name in the Depository Register, as certified by CDP as at 48 hours before the AGM."

Is this applied to all companies listed?

(12-04-2015, 08:29 PM)CityFarmer Wrote:

(12-04-2015, 09:39 AM)lohkh Wrote: When is the cut off date?
For example, if the AGM is scheduled on 21Apr2015, when it the latest date I have to buy the share under normal brokerage account to be eligible for the AGM?

I reckon you are eligible to attend AGM, once the shares are credited into your CDP account, one day in advance of the meeting day.

The credit day should be T+3.

Interesting. May be able to learn new stuff here.

IIRC, I had attended AGM, just one day after share credited into CDP, but I have to admit that I am not so sure on the timing. I had also attended AGM, after shares were sold, but within T+2 period.

I check the AR, the 48 hours may be applicable for proxy form submission, rather than attending the AGM personally.

Any experience buddies to prove me wrong?

(12-04-2015, 10:56 PM)lohkh Wrote: TQ, CityFarmer.
I have checked the circular from Penguin dated 10Apr 2015, paragraph 5 (pg23), ".... A depositor shall not be regarded as shareholder entitled to attend the AGM and to speak & vote there at unless he is shown to have shares entered against his name in the Depository Register, as certified by CDP as at 48 hours before the AGM."

Is this applied to all companies listed?

(12-04-2015, 08:29 PM)CityFarmer Wrote:

(12-04-2015, 09:39 AM)lohkh Wrote: When is the cut off date?
For example, if the AGM is scheduled on 21Apr2015, when it the latest date I have to buy the share under normal brokerage account to be eligible for the AGM?

I reckon you are eligible to attend AGM, once the shares are credited into your CDP account, one day in advance of the meeting day.

The credit day should be T+3.

(13-04-2015, 09:36 AM)CityFarmer Wrote: Any experience buddies to prove me wrong?

CityFarmer san

The company secretary needs to request the information from the share registrar. He needs some lead time and should not be expected to perform a last minute scramble. So a 48-hours cut-off dovetails nicely with the proxy cut-off as well.

On the other hand, if one could prove that one is a shareholder (i.e. through a contract note or something), the company secretary might be reasonable enough to allow the person to attend the meeting.

(13-04-2015, 09:01 PM)HitandRun Wrote:

(13-04-2015, 09:36 AM)CityFarmer Wrote: Any experience buddies to prove me wrong?

CityFarmer san

The company secretary needs to request the information from the share registrar. He needs some lead time and should not be expected to perform a last minute scramble. So a 48-hours cut-off dovetails nicely with the proxy cut-off as well.

I agree on the proxy, since post-processing is needed by the secretary. Attending meeting might be able to do it real-time online, or an up-to-date copy.

Anyone have tried that, by attending meeting just one day after T+3?