Recently, I had a most amazing request. One of the board members of a listed company called me because he could not start his AGM as he was the only shareholder present at that time. I understand that a quarum of at least 2 shareholders are required for an AGM.
As I was fetching my son from school, I had to make an immediate detour to the city, otherwise the AGM would have to be postponed to another date. As the key board member live outside of Singapore, I felt sorry for him and hence, made the detour. When I stepped into the conference room in my bermudas and sandals, it was already 1 hour past the time when the AGM was supposed to have started. All the directors got up and clapped as otherwise, they would have to reschedule the AGM.
Yes, I knew most of them as I had attended this company's AGM 2 years back. I will usually attend a company's AGM once I have accumulated sufficient shares to let the management and directors know of my intentions. I learnt this from reading books on Warren Buffett as he likes to inform management of his supportive and non hostile intentions.
Sometimes in life, we have to do things not for any commercial gain but just from what we feel is the right thing to do. They never told me that owning a minority stake in a company comes with some responsibilities!
On a more serious note, I hope that this company has learnt its lesson and ensures that at least one of its other directors should at least own one lot of shares.
I don't believe this but the same company has asked me to attend this year's AGM as they fear that they may not have enough shareholders to form a quorum. All that is needed are 2 shareholders. Last year, I told the directors present that it will be a good idea to have at least another one of them own even 1 lot of shares. Looks like they did not take my advice.
As I really don't like to attend AGMs unless it is absolutely necessary, I am hoping that another shareholder will appear this time. Failing which, I will have to do the same thing as I did last year.... attend an AGM that I really don't want to attend. Doing this a second time is even more painful as I have saved them the first time and am shocked that they did not fix the problem there and then. Certainly makes me worry about how the business is managed.