Three reasons you should attend shareholder meetings
If you think every company shareholder meeting involves as much pomp and ceremony as Berkshire Hathaway, think again. These meetings are long, they could be boring but they are essential for shareholders.
These meetings are not just reserved for the executive team or those investors with hundreds and thousands of shares in the company. If you're invested, you have a right to go...
But first, you need to know what meetings to attend.
Two types of meetings you must be aware of when investing
There are generally two type of meetings that shareholders are privileged enough to attend. The first is an annual general meeting (AGM) which is usually held at the end of every financial year.
According to The Company’s Act, there are certain matters that must be dealt with at the AGM. The meeting agenda must cover a review of the annual financial statement and the appointment or replacement of the company’s auditors.
The second meeting is an ordinary general meeting this can be called by members of the board or the company directors. Before this meeting takes place, shareholders but be made aware of it and the reason for the meeting must be clarified.
Three reasons why should you attend these meetings?
1.Get the upper hand on superior investment information
Most investors that attend shareholder meetings don’t realise how important it is their investments. As an investor you have the privilege to ask question to the board in front of other shareholders. This information is not always published in the company’s annual report.
You can hear exactly what’s going on in the company where your money is invested. In many cases, you will find out things about the company hat you never knew existed. You can then make an even better decision with your money.
2.Decide if the company meets your personal and financial objectives
After the meeting, you can speak to the company directors one on one. This is when they are more candid in their answers and you can get an inside look into the business.
This personal interaction with the company management will help you to assess if your directors are honest and have your best interest at heart. If you feel that they’re not serious about improving profits and deliver better returns, you can look for other companies that meet your expectations to invest your money in.
3.You can rub shoulders with like-minded investors
When you speak to other investors, you’ll find out what they like or dislike about the company. This is a great opportunity for you to improve your investment knowledge and discuss important investment strategies.
Use the opportunity to speak to as many investors as possible. Your interest and insights might elevate your reputation and you could find yourself invited to more events t hear from superior investors.
So, the next time you’re informed of an AGM or general shareholder meeting, take the opportunity to attend. It could make all the difference to your investment journey. You need to make sure that your money is invested in the right place, so don’t waste this important opportunity to learn, interact and have your concerns addressed.