BLACK CLOUDS ON GM’S
A VAST MAJORITY OF SHREHOLDERS DO NOT ATTEND THE MEETING. USUALLY, IT IS NOT WORTHWHILE TO ATTEND THE MEETING IF IT IS NOT IN THE CITY WHERE MEMBER IS LIVING
MOST OF SHAREHOLDERS HAVE SMALL NUMBER OF SHARES AND THUS HARDLY HAVE ANY SAY IN THE MEETING
MANY OF SHAREHOLDERS ATTEND THE MEETING ONLY TO GET SNACKS/LUNCH AND FREE GIFTS DISTRIBUTED. THE MEMBERS CREATE NOISY SCENE IF GIFT IS SMALL. THE NUISANCE OF ‘GIFTS’ AT THE MEETIMG HAS INCRESED TO SUCH AN EXTENT THAT THERE IS A PROPPSAL TO LEGALLY BAN SUCH ‘free gifts’ at the general meetings
Some members go the extent of collecting proxies from friends& ask for lunch packets and gifts
Some people are ‘professional members’. They get few shares of various companies solely with intention to attend the meetings. They can ask embarrassing questions at the meetings. They even blackmail the company and get some money to keep quiet at the meeting.
Some threaten to give notice for appointing himself as ‘director’. He has to pay only rs.500, WHILE COMPANY HAS TO SPEND COSIDERABLE AMOUNT. THEY EXTRACT SOME AMOUNT FROM COMPANY FOR NOT GIVING SUCH NOTICES.
SOME COMPANIES EVEN HIRE “GOONDAS” TO KEEP TROUBLE MAKING MEMBERS UNDER CONTROL
SOME COMPANIES HAVE SHIFTED THEIR REGISTERED OFFICES FROM METROPOLITAN CITIES TO SOME FAR OFF TOWNS OR VILLAGES. SO THAT MEMBERS DONOT FIND IT WORTHWHILE TO GO TO SUCH MEETINGS…
CAclubindia
