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Meeting backers half way

Aug 24 2009 21:39 Marc Hasenfuss

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I GOT my money's worth at Remgro's annual general meeting (AGM) last week.

Remgro chairperson Johann Rupert, every bit the consummate corporate entertainer, held forth on numerous subjects - the state of the world economy, corporate governance, the value of certain directors and even Remgro's problematic investments.

After more than an hour's worth of diverse discourse, I felt like I'd received an extra dividend.

There was even some intriguing off-the-record stuff (that I respectfully won't repeat here). And we were given the scoop on Michael Douglas too.

Not being a subscriber to entertainment industry magazine Variety, I was fascinated to learn that Michael Douglas will be back in his role as Gordon Gecko in Wall Street 2 - apparently picking up the story from when our reptilian (read: scaly) corporate raider comes out of prison.

I've written reams on the Remgro AGM in Finweek and Fin24, and I don't intend revisiting Rupert's fascinating musings here.

What I really want to highlight is how superbly Rupert hosted the AGM. He never rushed the official business, and answered any queries - including those of shareholder activist Theo Botha - openly and frankly.

Wary and weary

And this despite the fact that he still had to host successive general meetings for Remgro and Venfin that same day.

For me, it seemed like Rupert acknowledged that an AGM is the one time in a year that the executives are openly accountable to shareholders.

I see so many executives at AGMs respond to questions with a wary (weary, perhaps too) reluctance, almost as if enquiries from the floor are an irritant or inconvenient.

I know of one listed company - and the shameless shall remain nameless - which actually hosted an AGM on Christmas Eve. Now if that isn't making it inconvenient for shareholders, I just don't know.

Frankly, I don't know what it is about AGMs that give some executives the "horries".

But I get the sense that some listed companies would rather the AGM be brought to a conclusion as swiftly as possible - preferably without having to entertain pesky enquiries from the floor.

Yes, those five-minute AGMs are really useful. But then again shareholders should not be cowed into reticence.

If the chairperson's rushing towards an early conclusion to official proceedings, you need to stick your hand up on the cue of "any other business".

Perhaps shareholders prefer to collar executives over a cup of tea. I think that's a compromise, because there can be nothing better than having your enquiries answered in an official capacity with other shareholders (and perhaps the media) present.

And now - after-hours AGMs

There are encouraging signs, though.

I just have to look at some of our Cape-based empowerment companies - Sekunjalo, Cape Empowerment Trust and Brimstone - which have the decency to host their AGMs after hours.

This little courtesy allows all shareholders, many of whom hold down nine to five jobs, to attend the AGM. I have not seen many mainstream companies picking up this little trick, nor do I anticipate too many ever following suit.

Recent Sekunjalo and Brimstone AGMs really showed a commitment by directors to offer shareholders a glimpse into the business. This goes beyond a simple investment presentation on prospects, and would include product stands and an effort to ensure all key divisional executives are present.

Most importantly, these extra efforts make the shareholder feel part of the company - and shareholder loyalty can be critical in tough times.

Taking things a step further, I am hoping that one day all listed companies will make an effort to accommodate shareholders via an online video link-up format.

In this regard I am baffled that some of our London-listed companies (and I have already taken Old Mutual to task for this in Finweek) really don't make an effort to link up local shareholders via online links. Hell, even a listen-only function would be a great start.

We all know companies are happy to host conference calls when presenting results or major deals. Why not extend this to AGMs - with or without the visual component?

I noticed that at Trencor's recent AGM a video link was provided to California, where the group's main subsidiary, Textainer, has its headquarters.

Clearly these things can be done.

- Fin24.com

 
 
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