Dear Editor,
Note: In passing I believe that there has been no growth of new companies listed on the Stock Exchange for at least ten years; to me this is a very sad state of affairs given what is taking place in our economy as it relates to private sector participation and when one takes into consideration that a Stock Exchange is a very important vehicle to assist with the raising of funds for the startup of new companies and for the expansion of existing companies; no Initial Public Offerings (IPO’s) or IPO’s for the issuing of Debt Instruments.
I believe that the majority of invitations that will go out would invite its shareholders to participate in some type of Virtually Formatted Meetings; because of the Covid-19 Pandemic in 2020 the companies went to the Courts of Guyana in mid 2020 and recently in late 2022 and got Orders from the Courts giving them permission to hold Virtually Formatted Meetings.
As a small shareholder of some of those 15 companies listed on the Guyana Stock Exchange I would like to recommend that going forward the Board of Directors revisit the types of Virtually Formatted AGM’s, if any, they are inviting shareholders to participate in.
I make this recommendation for the following reasons
#1. I might be wrong but I believe that one of the reasons advanced to the Courts in Guyana in 2020 and recently in 2022 was the seriousness of the Covid-19 Pandemic; this situation has changed significantly for the better; the Government of Guyana/Ministry of Health have issued well supported and favourable guidelines and regulations in support of opening up the economy, all Government and non Governmental institutions have been inviting and encouraging the citizens of this country to participate publicly in all its undertakings.
#2. I believe that the Virtually Formatted AGMs that shareholders are invited to participate in, in my opinion are not good vehicles to promote adherence to good Corporate Governance and Transparency; for example just look carefully and examine some of the names that are usually selected to be present and to represent the vast majority of shareholders that are forbidden to attend the Annual General Meetings of the company they bought shares in; look at the language that heralds this whole event “All Shareholders are asked to take note that not more than x individuals whose names are set out below etc etc shall be present in the capacity solely as shareholders at the Annual General Meeting (AGM) and later on the invitation sets out and stipulates “that shareholders are entitled to appoint one of the x individuals named as your proxy with instructions as to voting on Motions to be proposed at the Annual General Meeting.”
Note: I wonder if as a shareholder one is entitled to know why this particular shareholder was selected to be one of the x individuals named to be present at the meeting re what was the method used for the selection.
In passing I want to let you know that some of my friends and associates locally and in the diaspora and I who are shareholders in some of the15 companies listed on the Stock Exchange refer to this type of Virtually Formatted AGMs as a “Mickey Mouse All In The Family Archie Bunker Style Annual General Meeting (AGM).”
I believe that some of the members of the Board of Directors of the 15 Companies that are listed on the Stock Exchange, who are not small shareholders friendly may feel very comfortable to shelter under the umbrella of the Orders of the Courts and to continue to carry on with the current type of formatted Annual General Meetings, that in my opinion has outlived its usefulness and continues to deny small shareholders proper and fair representation at the Annual General Meetings, a signature event that hundreds of shareholders look forward to every year.
I want to share with you a section of a mail I received from the Jamaica Central Securities Depository Ltd, an important arm of the highly world ranked, Jamaican Stock Exchange rated by the Bloomberg Company, it is an invitation from an outstanding Caribbean Company to attend a Shareholders Meeting in Trinidad & Tobago, part of the content of the mail reads “In keeping with local public health and Government restrictions for the past two (2) years, the Company took the decision to host its Annual General Meeting in a Hybrid Format, this year the 99th Annual General Meeting will again take place in a Hybrid Format, whereby shareholders may attend and participate either in person or Electronically by way of live webcast. All Covid-19 Health and Safety protocols will be observed for in person attendance. We look forward to seeing more of you in person this year”.
Note: There is nothing about shareholders taking note that no more than x persons could attend and as a shareholder you have to appoint one of those x persons as your proxy to vote on the motions to be proposed by the Annual General Meeting. I believe as a people we can do better than what we are currently doing.
Please continue to stay safe.
Much regards,
Dunstan Barrow AA, MBA(Hons) ; BSc(Hons)
Shareholder
