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22-04-2012, 09:29 AM
This is timely, although I had actually written a post on this quite some time back on my (now defunct) blog!
There should be one additional advice - don't rush for the food as if you hadn't eaten for a week!
The Straits Times
Apr 22, 2012
Company AGMs: Dos and don'ts
Investors should come prepared, so that they can ask informed questions
By Jonathan Kwok
It is the time of the year again when hundreds of investors make a beeline for the swankiest hotels or far-flung industrial premises to attend the annual general meetings (AGMs) of companies.
Clutching their annual reports, these shareholders hope to glean some insights from the head honchos whom they will probably be able to meet only once a year.
In the United States, investors ballot to attend the AGM. They queue for hours to attend Berkshire Hathaway's AGM to hear from billionaire investor Warren Buffett.
While Singapore doesn't have Mr Buffett, we have our own respected versions in the likes of United Overseas Bank's Mr Wee Cho Yaw or CapitaLand's Mr Liew Mun Leong.
Another draw could be the sumptuous buffet spread typically provided for shareholders after the one- to two-hour meetings.
'It's not surprising to see that retail investors are taking a more active role,' said Professor Jeremy Goh, director of the Centre for Corporate and Investor Responsibility at Singapore Management University's Sim Kee Boon Institute for Financial Economics. 'Retail investors are definitely getting more financially savvy.'
Mr David Gerald, president of the Securities Investors Association (Singapore), noted that under the law, a shareholder has the right to participate and vote at general meetings, regardless of the number of shares held in the company.
The shareholder has the right to appoint up to two proxies to attend on his or her behalf, and to be informed of the agenda of the meeting in advance.
The shareholder can also ask to view the minutes after the meeting.
How to prepare
Mr Gerald said that shareholders should familiarise themselves with the meeting's agenda and read relevant materials like the annual reports, circulars and recent company announcements. These documents are available on the Singapore Exchange website or the company's website. This will enable informed questions to be formulated and asked at the appropriate time during the meeting, he added.
Shareholders should arrive early. The chairman of the meeting is not obliged to wait for all shareholders to arrive before starting.
At the meeting
AGMs typically start with company executives giving a presentation of the firm's performance over the past year, and providing updates on business activities. After that, it is open to questions from the floor.
Mr Gerald said that investors should ask about business activities, company financials and the firm's future plans, and query the performance of directors and senior management.
He reminded shareholders to observe decorum when asking questions, so that the meeting can be effective. For instance, investors should put up their hands to ask for permission to speak, and introduce themselves by stating their names before making comments or asking questions.
Investors should not be antagonistic or insulting, and should keep their comments or questions short to enable other shareholders to have a chance to speak.
After the question-and-answer session, investors will be asked to vote on the resolutions of the meeting, which may include administrative issues like the re-appointment of directors and the approval of accounts.
Following the release of the voting results, the meeting usually ends, and investors can adjourn for food and refreshments.
Interested shareholders can stay behind to mingle with executives to clarify any doubts that were not addressed during the question-and-answer session.
'That's the main draw for me, to meet the management and find out more,' said remisier Alan Goh, 40, who attends such meetings regularly. 'We get to ask questions and talk to them once a year. Usually they are alert that shareholders want to talk to them, and they will talk to you.'
Many investors say they leave AGMs with a better understanding of the company, or at least a higher level of comfort, having met the management face-to-face.
Company chiefs say they try their best to answer queries and allay concerns at such meetings.
'It's a duty to meet shareholders once you list the company,' said Mr Kenny Yap, executive chairman of locally listed Qian Hu Corp.
Some bugbears
While many investors are keen to attend AGMs, some face problems in doing so.
With many companies holding meetings within the same time period, and with venues scattered all across the island, investors may have to skip meetings which clash.
Another bugbear is that meetings are typically held during office hours on weekdays. This means that working adults will find it hard to attend them.
'If they are on weekends, I'll go. But because they are on weekdays and during working hours, it's not worth it to take leave just for those one to two hours,' said Madam Cristina Tan, who is in her early 50s and works in a legal firm.
She likes attending AGMs to find out what other shareholders have in mind, and because good questions are often raised by them.
Prof Goh from Singapore Management University said: ''It will be nice, if their schedule permits and if it's not too much of a hassle... for companies to hold their AGMs in the evening or over the weekend.'
jonkwok@sph.com.sg
There should be one additional advice - don't rush for the food as if you hadn't eaten for a week!
The Straits Times
Apr 22, 2012
Company AGMs: Dos and don'ts
Investors should come prepared, so that they can ask informed questions
By Jonathan Kwok
It is the time of the year again when hundreds of investors make a beeline for the swankiest hotels or far-flung industrial premises to attend the annual general meetings (AGMs) of companies.
Clutching their annual reports, these shareholders hope to glean some insights from the head honchos whom they will probably be able to meet only once a year.
In the United States, investors ballot to attend the AGM. They queue for hours to attend Berkshire Hathaway's AGM to hear from billionaire investor Warren Buffett.
While Singapore doesn't have Mr Buffett, we have our own respected versions in the likes of United Overseas Bank's Mr Wee Cho Yaw or CapitaLand's Mr Liew Mun Leong.
Another draw could be the sumptuous buffet spread typically provided for shareholders after the one- to two-hour meetings.
'It's not surprising to see that retail investors are taking a more active role,' said Professor Jeremy Goh, director of the Centre for Corporate and Investor Responsibility at Singapore Management University's Sim Kee Boon Institute for Financial Economics. 'Retail investors are definitely getting more financially savvy.'
Mr David Gerald, president of the Securities Investors Association (Singapore), noted that under the law, a shareholder has the right to participate and vote at general meetings, regardless of the number of shares held in the company.
The shareholder has the right to appoint up to two proxies to attend on his or her behalf, and to be informed of the agenda of the meeting in advance.
The shareholder can also ask to view the minutes after the meeting.
How to prepare
Mr Gerald said that shareholders should familiarise themselves with the meeting's agenda and read relevant materials like the annual reports, circulars and recent company announcements. These documents are available on the Singapore Exchange website or the company's website. This will enable informed questions to be formulated and asked at the appropriate time during the meeting, he added.
Shareholders should arrive early. The chairman of the meeting is not obliged to wait for all shareholders to arrive before starting.
At the meeting
AGMs typically start with company executives giving a presentation of the firm's performance over the past year, and providing updates on business activities. After that, it is open to questions from the floor.
Mr Gerald said that investors should ask about business activities, company financials and the firm's future plans, and query the performance of directors and senior management.
He reminded shareholders to observe decorum when asking questions, so that the meeting can be effective. For instance, investors should put up their hands to ask for permission to speak, and introduce themselves by stating their names before making comments or asking questions.
Investors should not be antagonistic or insulting, and should keep their comments or questions short to enable other shareholders to have a chance to speak.
After the question-and-answer session, investors will be asked to vote on the resolutions of the meeting, which may include administrative issues like the re-appointment of directors and the approval of accounts.
Following the release of the voting results, the meeting usually ends, and investors can adjourn for food and refreshments.
Interested shareholders can stay behind to mingle with executives to clarify any doubts that were not addressed during the question-and-answer session.
'That's the main draw for me, to meet the management and find out more,' said remisier Alan Goh, 40, who attends such meetings regularly. 'We get to ask questions and talk to them once a year. Usually they are alert that shareholders want to talk to them, and they will talk to you.'
Many investors say they leave AGMs with a better understanding of the company, or at least a higher level of comfort, having met the management face-to-face.
Company chiefs say they try their best to answer queries and allay concerns at such meetings.
'It's a duty to meet shareholders once you list the company,' said Mr Kenny Yap, executive chairman of locally listed Qian Hu Corp.
Some bugbears
While many investors are keen to attend AGMs, some face problems in doing so.
With many companies holding meetings within the same time period, and with venues scattered all across the island, investors may have to skip meetings which clash.
Another bugbear is that meetings are typically held during office hours on weekdays. This means that working adults will find it hard to attend them.
'If they are on weekends, I'll go. But because they are on weekdays and during working hours, it's not worth it to take leave just for those one to two hours,' said Madam Cristina Tan, who is in her early 50s and works in a legal firm.
She likes attending AGMs to find out what other shareholders have in mind, and because good questions are often raised by them.
Prof Goh from Singapore Management University said: ''It will be nice, if their schedule permits and if it's not too much of a hassle... for companies to hold their AGMs in the evening or over the weekend.'
jonkwok@sph.com.sg
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
