Annual Stockholders' meetings now no longer mundane affairs

Achara Deboonme

achara_d@nationgroup.com

The Nation

If they own a lot of stocks, they must go to many annual shareholders' meetings, usually several months after the fiscal year ends.

Before, most investors ignored the annual general meetings (AGMs), since they were banking on capital gains rather than anything else from the companies' management teams. As such, they focused entirely on stock prices, and most of them only wanted to sit in brokerage offices and watch stock-price movements.

   If they lost, they had no one to blame; if they won, that was the big reward.

   But retail investors now realise a company's policies are the main driver of share-price movements, so they're more interested in AGMs. This is a once-in-a-year chance to meet the top executives of the companies they've invested in.

   It is also a once-in-a-year chance for them to shoot questions or whatever proposals they have at the executives.

   PTT president Prasert Bunsumpun must be the executive most sought after by shareholders, because he's the chief of the bourse's largest stock by market capitalisation.

   He also sits on the boards of PTT subsidiaries, including Thai Oil, PTT Exploration and Production, PTT Chemical and PTT Aromatics and Refining (PTTAR).

   Heading a huge conglomerate like this, Prasert must have heard so many proposals from all different sides. By now, he is ready for proposals, knowing that PTT has so many stakeholders to look after. (This is what he always claims.)

   Proposals in general could give him a headache. While having to ensure a sufficient energy supply, PTT was recently instructed to help our neighbouring countries that were running short of liquid petroleum gas. Many people also expect PTT to sell fuel oil to the public at cheaper prices than other retailers.

   But proposals from PTTAR shareholders at a recent AGM made him laugh. The shareholders, mostly seniors, were given a water cooler and a cookie box as souvenirs. They complained they did not drive and that it was inconvenient to take home such large objects via public transport. They suggested that at the next AGM, PTTAR should hand out vouchers for free fill-ups at PTT service stations. The coupons could be worth Bt500 each. And they said it would be even better if the parent company, PTT, could offer a special discount.

   Certainly, Prasert chuckled. While promising something smaller next time, he knew the coupons would be no problem. He must also know the company does not have to produce coupons for each registered shareholder, as only those without day jobs would attend the AGM.