Minority shareholders – what about your duties and obligations?

I can’t help be amazed at the way some retail “investors” sometimes mistake owning a few shares of a listed company as if they really “own” the business.

All this talk about aligning the management’s compensation with shareholders interests… How the laws and regulations can be better improved to “protect” minority shareholders, etc…

I guess calling myself a speculator makes life a lot easier for me. And my trading cousins must be smiling at me and giving me a high five! What matters to us is how much skin we bring to the game, and when we leave the table, whether our pockets are flushed with more cash than we entered the game!?

Come on! Let’s admit it. We are all greedy “freeloaders” when we “invest” in a listed company.

We part with our money, and in exchange for doing absolutely nothing, we either:

a)   Hope to make a capital gain by selling our shares to a greater fool out there. (If you think the price will go higher why are you selling?)

b)   Or like a leech, we just want the get the regular “ang pows” (dividends) every year from your “investment”. We see our penny invested as bigger than a bullock cart’s wheel!

I won’t talk about your minority shareholders’ rights. You know them better than me. I just would like to gently point out:

1. Where were you when Management has decided to “downsize” 5% of the workforce in order to meet your incessant demands to show earnings growth?

2. What about the employees’ benefits and rights when you applaud management’s wise decision to “outsource” non-critical business activities?  

3. Have you ever once considered the environment impact and whether child labour was employed by the units outside the shores of Singapore? Far from our prying eyes?

4. Did you notice that most top management teams have only a token number of female executives? How about the Board members? You only question about their “independence”; but never wonder why so few female Board of Directors?

5. How about the quality of the products and services of the listed companies you own? Did you ever ask during the AGM how the customer experience can be improved? Or were you only interested on the buffet spread? 

I can go and go – like the energizer bunny. But you get the picture. It’s all about me, me, me!

Me? I am an equities man-whore. I’m in it for the money. (I never said I was a saint!)

I employ a “don’t ask; don’t tell” policy.

Hey lady! No kissing on the lips