Thursday, 4 August 2011

Shareholders Make Merry

The coupon says I get a snack and a hot beverage. I want a cold drink,” yelled a shareholder of Tata Steel.

Here is a list of questions that were directed at the Tata Steel management on Wednesday.
Why do you have the AGM during the monsoon period?
Tata: Not possible.
Why don’t you use recycled paper?
Tata: It is already being used.
Will you be discontinuing paper-based annual reports, and what is the cost of distribution?
Tata: Both options are available and the cost is Rs 24 per copy.
Why don’t you provide binoculars or glasses with your annual report?
Tata laughs and suggests this question be asked in the AGM of Titan Industries.
Why don’t the board members and other senior people hold shares in the company?
Tata: We had problems in the past and hence, this is not encouraged and we are cautious due to insider trading regulations.
Who pays for the AGM meet?
Tata: Shareholders pay for the expenses.
When will you appoint your successor? Who is it going to be?
Tata: We are looking into it.
Can we go for a plant visit?
Tata: There are safety issues and not possible.


There's this great anecdote of how a particular women, i must refrain from naming, buys a single share in some random companies, medium size and then screws them .
                      So for example lets say she's at ABC company's AGM.Now out of nowhere she stands up and says that either she wants to move some resolution or make a speech.Now moving of a resolution can be done by show of hands or an actual ballot .With a ballot, its the added trouble of getting the ballot paper,boxes and booth's ready.Plus there is still tally of the votes to be done.
                      Now in both situations,either the speech or a vote, consumption of time is on the higher side.So the AGM stretches beyond the planned time leading to the  company having to arrange for further stay-so hire the conference hall for the time consuming activities.Then make further arrangements for snacks and beverages for the irksome shareholders.
                      This leads  to a considerable cost for the company and more than the cost its the hassle which comes with such bastards. Shareholders are quick to make merry of the situation making ridiculous demands and wringing the company until the last drop.
                      So to avoid the mess , the companies usually resort to paying off this woman rather than to fall into her web of frivolous activities.        
Huge companies,though, don't take this bulls@#$.Through extra constitutional means ( read misusing the police, roughing up people or simply making an anonymous tip to the income tax department) make life hell for such people.Thus generally the woman avoids such companies.

P.S:The woman comes in a three wheeler but bills it at the same level as hiring a luxury car.

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