The Hindu Business Line : AGM & `problem' shareholders — CESC's way of keeping them at safe distance

HOW to avoid facing `problem shareholders' during AGMs? CESC Ltd, the flagship company of the Rs 8,460-crore RPG Group, has found a way to keep them at a distance.

The company is holding its 37th annual general meeting on the same day that ITC Ltd, the city-based tobacco major, has convened its 94th AGM.

Both meetings are scheduled to be held on July 29. Even the timing of the two meetings is same - 10.30 in the morning.

Mr Sanjiv Goenka, Vice-Chairman of RPG Enterprises, has had the AGM date for his company fixed on July 29 so that it coincided with the ITC meeting. "This will help us to avoid some of the troublesome shareholders. They just make a nuisance of themselves and jeopardise the meeting. Their intention is different and they are not interested in participating in a healthy discussion on the company's accounts."

Mr Goenka made the comment about a fortnight ago at a press conference here to announce the new initiatives of the RPG retail business. Mr Goenka was critical of the behaviour of a few minority shareholders who he said consciously hold to ransom almost every shareholder meeting they attend. According to him, their modus operandi is simple: raise an insignificant issue and then pick a fight over it.

"Later on they come to us and ask for all sorts of favours. If these are not granted they repeat their behaviour in the next meeting. Not only us, all corporate houses in the city are facing the same problem. We must protest and bring an end to this," Mr Goenka said at that press conference.

Interestingly, last year too the AGM dates of the two companies coincided. The 93rd AGM of ITC and 36th AGM of CESC were held on July 30 and at 10.30 a.m.

It is no wonder that small shareholders are worked up over this stand. Mr Rajiv Bose, who has held shares of both CESC and ITC for years, says: "Both CESC and ITC are two Kolkata-based old companies. There are a large number of minority shareholders in these two companies. An ITC AGM or, for that matter, even the CESC AGM used to be a big annual event for us".

He added: "A majority of small shareholders are being punished for the bad behaviour of a few of their colleagues. Like last year, I will have to choose between ITC and CESC," he said.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
IA launches `Easy Fares' scheme

IMD stands by normal monsoon forecast, sees 97 pc rainfall in July

`Private oil cos may be asked to bear part of subsidy burden'

No stake for foreign airlines in domestic carriers: Govt
Policy to specify norms for ground handling

Govt opens up lignite blocks for captive power production

Infosys places Rs 4,600-cr cover with NIC

Advance tax payment of top taxpayers to be `monitored'

Pvt bank stocks shine; Sensex soars

RBI sets up dept to track financial markets

AGM & `problem' shareholders — CESC's way of keeping them at safe distance