This is the time of the year when many Malaysian public listed companies would hold their annual general meetings (AGMs). The HCK Capital Group Bhd held its AGM last week and SEGi University and Colleges will hold its meeting soon.
Based on past experience, the AGMs in these companies had always been tame affairs. Some corporate AGMs can be very fiery as tension run high. Others can see the boardroom tussle spill into the open during the yearly affairs. In some AGMs, shareholders vent their frustration at the board over the company’s products or services.
In the corporate world, it’s not just about keeping shareholders happy. It’s a fine balancing act making sure that the interests of shareholders, the management and clients are well taken care of. It’s a myth to think that these interests are always in competition or mutually exclusive.
Happy customers can lead to better earnings, which can translate into higher dividends for shareholders. Likewise, a well-incentivised management team is not necessarily a financial burden, but can spur the company towards enhanced profitability.
For a company to thrive, it has to operate in a conducive ecosystem. If the ecosystem is out of balance, the company would not be able to enjoy a sustainable growth.