Listed companies should stand up to shareholders' scrutiny without legal threats

Dear Sir. The current lacklustre retail interest in listed companies on the Singapore Exchange can be partly attributed to the way minority shareholders are being treated by the management and the board of directors of certain companies at annual general meetings (AGMs) and extraordinary general meetings (EGMs). The management who runs the day-to-day operations is answerable to the board and, in turn, the board is answerable to the shareholders, who own the company. Investors, minority or majority, should be treated equally and with respect.

Most retail investors are minority investors. Individually, they own only a few shares, but collectively they may own a sizeable chunk of the shares and may be a force to reckon with. They should not be mistreated or worse, bullied or threatened by the management and board of the companies they own.

Some retail investors take the time and trouble to attend these AGMs and EGMs so as to know the companies better and to be informed and kept abreast of past performances and future outlooks. It is also an opportunity for them to interact personally with the management and directors of these companies. At these AGMs, food and drinks are usually provided to compensate them for their efforts in attending these AGMs, but this seems to be the exception rather than the norm nowadays; even shopping vouchers seem to be a rarity. At the very least, the companies can provide some beverages such as coffee, tea and water. After all, one gets thirsty from talking and asking many questions.

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