1) Moneycontrol – “Eight concerns raised by Infosys shareholders at AGM” – 11th June 2012
Read the full article: Moneycontrol – 11th June 2012
According to proxy advisory firm InGovern Research Services, which tracked the AGM, around 325 shareholders and 37 proxies were present, which was below last year’s attendance.
An extract from the note by InGovernance on the Infosys AGM:
“Some of the concerns raised by the shareholders were:
1. Low dividend payouts by the company even with very good cash balance and increase in profits.
2. Request for issue of bonus shares which have not been declared for about 6 years.
3. The allocation of Rs 30 crore to the Corporate Social Responsibility division through the Infosys Foundation is very low and should be increased.
4. Non-sending of Annual Reports and Notices by post, to shareholders who are not tech-savvy.
5. No performance appraisal and basis of compensation structures to the members of the Board.
6. Very less number of women-directors on board (only one-Ms. Ann Fudge)
7. High cash balances being idle and remaining un-invested elsewhere.
8. No M&As being undertaken by the company.
Some of these concerns raised by retail shareholders-like those on performance appraisal and compensation structures and women directors-are thought provoking. It is indeed disappointing that institutional investors don’t necessarily raise these issues with the companies. Of course, there is a long way to go to make AGMs and other shareholder meetings more meaningful and for companies, and to use AGMs for positive engagement between companies and institutional investors.”
2) Business Standard - “Small investors learn to ask the right question at AGMs” – 12th June 2012
Read the full article: Business Standard – 12th June 2012
“Some of the concerns raised by retail shareholders – like those on performance appraisal and compensation structures and women directors – are thought-provoking. It is indeed disappointing that institutional investors don’t necessarily raise these issues with the companies,” said InGovern Research Service, a Bangalore-based proxy advisory and corporate governance research firm, in an Infosys AGM note.