Joy for shareholders: Two banks announce AGM dates in March ‘14
View(s):At least two commercial banks are setting new, positive trends of publicly announcing dates of the annual general meetings, almost five months in advance.
In what appears to be a response to requests, appeals and pleas from shareholders of different companies not to ‘bunch’ AGMs together, the Commercial Bank on Monday, November 4 informed the Colombo Stock Exchange (CSE) that its next AGM would be held on 31st March 2004 at 2 pm at a venue to be announced later. The following day (Tuesday), HNB informed the CSE of its intention to hold the 2013/14 financial year AGM on 28th March 2014 at 10 am at the HNB headquarters office.
A HNB official told the Business Times that this is the second year in which the AGM date has been announced, far ahead in advance.
The official said the move was at the request of shareholders that the meeting being held on a day where there are not many other AGMs to make it possible for the stakeholders to attend the meeting. “From past experience, fewer meetings are held during the last week of March,” he said. A CSE official said there were no (new) rules relating to listed companies being asked to announce their AGM dates well in advance but believed it was a good move in terms of governance.
Dates of a meeting are normally announced in the annual report of a company and held generally about a month after the release of the report.The Business Times has over the years reported the concerns of shareholders in AGMs being held at the same time or spread out over one day, making it impossible for shareholders of different companies to attend all the meetings, at the same time!
While some shareholders accuse companies of ‘bunching’ these meetings together to deter participation and avoid ‘unfavourable’ questions on the accounts and accountability of directors, companies say most minority shareholders attend the meetings for the ‘short-eats’ and ‘giveaways’ and don’t make any substantial contribution to the future direction of the company.
CSE officials, asked earlier whether dates could be changed to suit all shareholders, have said that it’s the prerogative of companies to decide whatever dates within the time-frame of the CSE rules.