CMC saga: It’s necessary to protect the rights of minority shareholders
Posted Tuesday, July 17 2012 at 20:32
The Capital Markets Authority also called in a South African company, Webber Wentzel to conduct an independent audit on the affairs of the company.
Some of the findings of the South Africans contradicted the findings and conclusions of the forensic audit by PWC.
There were reports that CMC had entered into a lopsided deal in which an agent, Pewin Ltd, was being paid six per cent of all motor vehicle sales to the government.
I could go on and on. The point is that because an annual meeting has not been held, the voice of the minority shareholder on these burning issues has been totally ignored.
First and foremost, shares confer to the owners rights to profits and assets. But they also confer rights to appoint the board and approve major decisions.
In the interest of protecting the interest of minority shareholders, the CMA should now force CMC to hold an annual general meeting.