04th June 2019
A good corporate governance is where shareholders of companies in having equal responsibilities and advancing own interest by practicing the rights given by Companies Act,2016 in ensuring that the companies they invested are well governed.
An AGM is to build comfort, confidence, company's direction, control with assurance and building up shares' value but if the BOD failed to perform, then it could be bad to the company.
Hereby, these are the following rights of participating & voting (Section 293) in general meetings:
i. To attend, speak & vote (vote by show of hands or one-share-one-vote) at general meetings ( Section 340);
ii. To requisition the company in convening a general meeting (Section 310);
iii. To place matters on the general meeting's agenda (Section 87);
iv. To appoint up to 2 proxies in relation to a meeting (Section 334);
v. For corporate shareholders, a corporate representative can be appoint to attend the general meeting while for individual shareholder can appoint proxies where the proxies are having the rights to attend, participate, speak and vote at the meeting of members of the company (Section 334);
vi. Shareholders are encourage in participate in the general meeting or virtual by adopting technology and allow to vote electronically.
Secondly, there are the 15 most common questions during the AGM which are prepare by the shareholders towards the directors:
a. What are the current financial position and could the company in making on-time payment to all liabilities?
b. Are the figures being audited and how robust it is?
c. Is the current exchange rate effected the Company's revenue and if yes, how to risk-manage it?
d. What is the BOD's plan for future need of working capital and do we need to raise another round of working capital?
e. Has the BOD able to identify the under-performing assets, human capital and operations division? If yes, what are the BOD's decision about it: Keep, Sell or any significant importance?
f. Are the inventory levels healthy and what are the industry's averages?
g. How the company manages credits, debt chasing and process sending early warning alarms?
h. What are the credit limits given by the banks for now?
i. How the company does the valuations of current assets?
j. Is there any changes comparing to the current year vs last year's investment plan?
k. How would the BOD rates their relationship with bankers, social media and public?
l. Any breached contracts so far and if yes, how to prevent from happening again?
m. Issues arising in debt management and actions being taken.
n. Is the supply chain supportive and any weakness found?
o. The cost of retaining talents/ key-man, redundancies in manpower and acceptable labor costing?