Corporate governance: No fancy food or gifts during AGMs
Ministry of corporate affairs feels that freebies divert attention
If you are a shareholder, and look forward to annual general meetings (AGMs) for the goodies and the food, the good days may soon come to an end. The ministry of corporate affairs has posted a circular on its website, asking for feedback on a proposed ban on distribution of gifts at AGMs of companies.
After receiving representations, the government has realised that gifts are often used to divert the attention of shareholders from the main purpose of the AGM. In addition to that, “shareholders are kept busy collecting gifts, gift coupons and packets of snacks during the progress of the meeting, while corporates manage to pass certain resolutions without any debate on the same.” Hence, the proposed...
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