Source of article: The Business Times

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In summary:

Minority shareholders in Singapore-listed companies have expressed their frustrations when companies refuse to hold the required annual general meeting (AGM). Some companies have gone years without convening a statutory AGM. Often, these companies are struggling with debt and declining business operations.

The AGM is the only platform where shareholders can hold the Board of Directors accountable for poor company performance. However, major shareholders who control the Board often use legal technicalities to dismiss requests from minority shareholders to hold general meetings.

Most minority shareholders lack the financial resources to legally challenge the Board’s ongoing refusal to hold meetings. As a result, many retail investors suffer in silence, especially when the company is suspended from trading, leaving them unable to sell their shares and cut their losses.

To address the issues faced by minority shareholders, SGX RegCo published a consultation paper proposing new rules to create a more level playing field.

I shared my views on what more can be done to support minority shareholders in a video podcast interview with veteran journalist Ms. Howie Lim. The interview is published in the Singapore Business Times Online on July 17, 2024. See attached.

BT Podcasts: Changes to Companies Act needed

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