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PR Newswire
12-05-2012, 11:46 PM
The Straits Times
May 12, 2012
companies
April AGM season may be too hectic for some
Clustering makes it hard for analysts, investors with shares in multiple firms to attend meetings
By Alvin Foo
APRIL is the hottest month for Singapore-listed companies to hold their annual general meetings, with the last five business days of that month proving to be far and away the most popular slot.
Nearly two in three companies here - 63 per cent - have their key shareholder meeting during April, according to a recent study released yesterday by ACCA Singapore and KPMG.
Almost half of these firms prefer to hold their AGMs in the last five business days of the month, spelling a hectic time for analysts, investors hoping to attend multiple AGMs and business journalists.
The reason is not some sort of corporate superstition, but rather the fact that it is the last chance to hold AGMs for firms with a Dec 31 end to their financial year. Singapore-listed companies have to hold their AGMs within four months of their financial year-end.
Mr Tan Wah Yeow, KPMG Singapore's deputy managing partner and head of markets, said: 'Having so many AGMs clustered into the last five working days of April may pose challenges for shareholders and directors with interests in multiple companies. Companies should be encouraged to adopt principles of fair communication.'
The clustering of AGMs as well as results announcements makes it harder for them to get media attention and analyst coverage, and also inconveniences directors who sit in several boards, noted KPMG Institutes in Singapore research head Mak Yuen Teen.
He noted: 'There's a serious clustering of AGM dates, which may make it difficult for shareholders holding shares in multiple companies to attend AGMs.'
Professor Mak suggested that firms should plan and publicise their AGM dates as early as possible. They should also address the need for shareholders to be kept informed in case they are unable to attend the AGM by providing detailed minutes, recordings or website links.
The above findings were part of a report which aims to provide an insight into how Singapore-listed companies communicate with stakeholders and other investors.
The sample consists of 712 companies listed on the Singapore Exchange as at 31 Dec last year, excluding those with a secondary listing on SGX, newly listed companies, companies which did not release any annual report during 2011 and companies under judicial management.
Study data were obtained from the latest annual report and company announcements as at 31 Jan this year, and the company websites.
ACCA Singapore country head Darryl Wee said: 'To improve stakeholder communications, an investor relation function should be sufficiently resourced, have adequate stature with reporting lines to senior management, and be closely involved with the strategic management of the business.'
The study also found that companies typically take 117 days to hold their AGMs, and 54 days to report full-year results.
Another key finding was that almost one in three companies received queries from the SGX about their results, with 32 per cent of these being queries for full-year results and 24 per cent being for quarterly results.
The report suggested that disclosures relating to results announcements, significant transactions and trading activity need to be more closely monitored.
Companies need to take steps to minimise the risk of variances and hence queries from the SGX. They should ensure there are adequate internal or independent reviews of the results before they are announced.
alfoo@sph.com.sg
May 12, 2012
companies
April AGM season may be too hectic for some
Clustering makes it hard for analysts, investors with shares in multiple firms to attend meetings
By Alvin Foo
APRIL is the hottest month for Singapore-listed companies to hold their annual general meetings, with the last five business days of that month proving to be far and away the most popular slot.
Nearly two in three companies here - 63 per cent - have their key shareholder meeting during April, according to a recent study released yesterday by ACCA Singapore and KPMG.
Almost half of these firms prefer to hold their AGMs in the last five business days of the month, spelling a hectic time for analysts, investors hoping to attend multiple AGMs and business journalists.
The reason is not some sort of corporate superstition, but rather the fact that it is the last chance to hold AGMs for firms with a Dec 31 end to their financial year. Singapore-listed companies have to hold their AGMs within four months of their financial year-end.
Mr Tan Wah Yeow, KPMG Singapore's deputy managing partner and head of markets, said: 'Having so many AGMs clustered into the last five working days of April may pose challenges for shareholders and directors with interests in multiple companies. Companies should be encouraged to adopt principles of fair communication.'
The clustering of AGMs as well as results announcements makes it harder for them to get media attention and analyst coverage, and also inconveniences directors who sit in several boards, noted KPMG Institutes in Singapore research head Mak Yuen Teen.
He noted: 'There's a serious clustering of AGM dates, which may make it difficult for shareholders holding shares in multiple companies to attend AGMs.'
Professor Mak suggested that firms should plan and publicise their AGM dates as early as possible. They should also address the need for shareholders to be kept informed in case they are unable to attend the AGM by providing detailed minutes, recordings or website links.
The above findings were part of a report which aims to provide an insight into how Singapore-listed companies communicate with stakeholders and other investors.
The sample consists of 712 companies listed on the Singapore Exchange as at 31 Dec last year, excluding those with a secondary listing on SGX, newly listed companies, companies which did not release any annual report during 2011 and companies under judicial management.
Study data were obtained from the latest annual report and company announcements as at 31 Jan this year, and the company websites.
ACCA Singapore country head Darryl Wee said: 'To improve stakeholder communications, an investor relation function should be sufficiently resourced, have adequate stature with reporting lines to senior management, and be closely involved with the strategic management of the business.'
The study also found that companies typically take 117 days to hold their AGMs, and 54 days to report full-year results.
Another key finding was that almost one in three companies received queries from the SGX about their results, with 32 per cent of these being queries for full-year results and 24 per cent being for quarterly results.
The report suggested that disclosures relating to results announcements, significant transactions and trading activity need to be more closely monitored.
Companies need to take steps to minimise the risk of variances and hence queries from the SGX. They should ensure there are adequate internal or independent reviews of the results before they are announced.
alfoo@sph.com.sg
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