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Is being a shareholder just exercising right by voting on annual proxies ?
I hope not.
Is being a shareholder just submitting proxy proposal annually ?
I hope not.
Why not expand shareholder rights to make the board and management accountable to shareholders ?
1. Can company's management be mandated to answer questions in quarterly earnings call for questions raised by a group of 50 shareholders say owning >1% ?
2. Can company's board be mandated to answer questions every quarter raised by a group of 50 shareholders say owning >1% ? A quarterly shareholders meeting in lieu of annual shareholders meeting.
- Eg: Company A has a huge cash hoard. Till date the board has not answered shareholder's questions on their plans for this cash which is earning <0.5% interest. Shareholders believe there are lots of missed strategic market opportunities for this cash.
- Eg: Shareholder's believe Company A could be a great acquisition candidate for company B that would likely offer Company A at least 3 times its current market price based on company B's recent market acquisitions. Can company A's board be forced to have discussions in good faith with company B.
- Eg: If shareholders need changes in the way company conducts itself , there has to be a way for shareholders to suggest this to management/board and the management/board needs to be mandated to respond. Company A has investor relation practices that has room for improvement.
- Eg: Company A's shareholders believe there is compelling market evidence that could value the company 3 times in a strategic acquisition with Company B. Shareholders would want company A's board to pursue this opportunity. Shouldn't there be a proxy vote without having to wait for the annual proxy ? Keep in mind markets change fast.
These rights become esp important when there are conflicts of interest in the board.