shareholders complain about company AGMs
Minority shareholders have called on listed companies and the Colombo
Stock Exchange to ensure no two corporate annual general meetings
are held at the same time but their pleas are unlikely to be answered
owing to practical difficulties.
shareholders have complained that they are inconvenienced because
many companies tend to hold their AGMs around the same time. This,
they said, makes it difficult for them to attend all or most of
the AGMs of companies in which they own shares. The problem becomes
acute in March every year.
shareholders have asked whether this bunching up of AGMs was being
deliberately done by some companies who fix their AGMs to clash
with other companies. This, they said, might be done in order to
disperse shareholders to different locations to prevent queries
of their yearly accounts and operational activities.
CSE spokesman said the exchange does not have the power to tell
companies when to hold AGMs. The bunching up of AGMs appears to
be accidental because many companies have to submit their annual
accounts and hold their AGMs within a limited period of time, he
are 53 companies with their financial year ending in December and
190 companies with their financial year ending in March. "There's
a 3-4 months window within which all accounts are submitted and
AGMs are held," the CSE spokesman said."These companies
have to fit in within this period. So obviously you'll have more
than one AGM per day. It's a practical problem."The spokesman
also pointed out that shareholders could resort to the mechanism
of voting by proxy if they are unable to attend an AGM.