The author of course is right when he says that there is a marked indifference on the part of retail shareholders towards AGMs with attendance being confined to those who are located in the immediate vicinity of the venue of the meeting unless, of course, they are able to sniff the possibilities of freebies including sumptuous food to be served at these meetings.

Incidentally, public sector companies have been prohibited from giving gifts at AGMs through an administrative fiat. Be that as it may, the truth is shareholders are more concerned about the economic benefits accruing from their shareholding.

Earlier, when share values were not as high as they are now, there used to be a routine clamour for hike in dividend. Now that the market price of shares in many companies is 30-40 times their face value such demands have petered out in the depressing knowledge that dividend yields are not significant anyway. Yes, shareholders invariably rise in crescendo in making a demand for bonus shares.

In the event, the other ordinary items of business in the agenda of an AGM — consideration of accounts, appointment of directors and auditors — are hustled through without a whimper where a protracted debate is called for.

AGMs ought to be positioned as a forum for a healthy debate on wide-ranging issues concerning a company. Articulate speakers well-versed on the subject should be brought in by enlightened groups of investor organisations to challenge the management perspective.

This shouldn’t be difficult despite the ban on proxies speaking at company meetings because such articulate speakers can be made shareholders in the run up to the meeting transforming them from proxy, with its demeaning implications, to a full-fledged member vested with the right to speak.

That managements are often in a position to steamroller their proposals is no ground for snuffing out the only forum where the shareholders can assert themselves for whatever it is worth.

AGMs would of course become more meaningful if promoters are not allowed to control as much as 90 per cent of the shares of a company. The law that mandates substantial public participation alone would end the farce of listed companies with a token 10 per cent public participation.

And that law incidentally would also have the effect of making AGMs the gladiator’s ring for flexing muscles. Healthy debate between rival groups equally endowed has been found to be the sustaining source of democracy, be it political or corporate.

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