Powerbooks & Stockholder Empowerment

     One of my favorite places, if not my favorite, are the bookstores.  I specifically love Powerbooks because they allow customers to try to read the books almost indefinitely.  Whenever I visit one of their branches, this are the times I would get hold of expensive books which I wouldn’t want to purchase even if I want to.  Mahal kasi. haha!  Yesterday, I was able to read some pages of ‘A Weekend with Warren Buffett: And Other Shareholder Meeting Adventures” by Randy Cepuch.

     Here, the author shares his experiences attending annual shareholders’ meetings in different places, one of which is Berkshire Hathaway - Buffett’s conglomerate.  Mr. Randy candidly admitted that in 1999 he bough a single share of Berkshire - his first ever stock.  He also recalls his face-to-face encounter with the “Oracle of Omaha.”  I hope my cousin was not rushing yesterday that I get to read more pages.hehe!

     Speaking of shareholders’ meeting, the PSE has some advice.  Read the article below.

PSE urges stockholders to be assertive at meetings*

By JAMES A. LOYOLA

April 7, 2009, 6:24pm

The Philippine Stock Exchange (PSE) urged shareholders to take an active role in asserting their rights and privileges as companies enter the annual stockholders’ meetings season of April to July.

Shareholder activism generally refers to shareholder proactive vigilance in the conduct of the affairs of their companies. It is widely practiced in other markets like the United States, the United Kingdom, Japan and South Korea.

PSE president Francis Lim said that it is during the annual stockholders’ meeting when stockholders get the opportunity to vote for their choice of directors, approve or ratify corporate actions, and ask questions from management.

“Shareholders have rights under the law to allow them to participate in the affairs of their company. These rights include the right to information, right to choose directors who would direct the affairs of the company, and equally important, the right to demand good governance of their company,” Lim said.

In most cases, shareholders are galvanized into action only after their rights are trampled upon. The PSE is thus encouraging shareholders to be more proactive, empowered and vigilant in how companies, where they have a stake in, conduct their affairs.

“An informed and vigilant body of shareholders is the best form of shareholder protection,” Lim said. He explained that shareholder vigilance can take many forms. It may involve shareholders engaging their companies in private meetings whenever there are corporate actions on which shareholders disagree on, asking for and attending company briefings as well as carefully studying company materials so that they could ask intelligent questions during shareholders’ meetings.

The creation of minority shareholder groups can also serve as an important tool to make directors and management accountable for their decisions.

He added that the PSE has recently established a Corporate Governance Office and Corporate Governance Committee at the board level to help institutionalize corporate governance in the stock market.

“We are also looking at a new listing board reserved for companies that are willing to subscribe to higher corporate governance standards. We shall also consider a new set of corporate governance principles or guidelines specifically tailored for listed companies,” Lim said.

Lim added that these special board and corporate governance principles and guidelines are already in place in some exchanges but unfortunately, they have yet to be set-up in the Philippine stock market. “Good corporate governance is a key component of PSE’s 5-year LEVEL UP strategic agenda,” Lim reiterated.

* source: Manila Bulletin mb.com.ph