Theo Botha is one of the few shareholders who understands his role, that shareholders own the company and management works for them. He has been a lone voice crying in the wilderness, trying to remind companies to act with integrity on labour issues or involve-ment in countries with oppressive regimes are sometimes referred to as«social resolutions». I think some of the board members who are just cheque collectors are no different to the fat MPs who attend parliament just to be in time for lunch time. His resolutions from the floor during AGMs And the resolutions are surprisingly effective. He is good at getting a mule’s attention: That is hitting Management between the ears with a two-by-four, exposing their self serving and value destruction anctics for all to see at AGMs . I must say that he makes me miss Brian Molefe when he used to to take his Shareholder Activist role seriously whilst at PIC. He used to use the PIC shareholding to influence social ends like affirmative action, BEE and other social ends, He was effective at reading the riot act to companies like Sasol, where PIC had significant shareholding. Before he got seduced and silenced by the Zumantashe charms he used to be the foremost sponsor Socially Responsible Resolutions at AGMs. The primary responsibility for the day-to-day activities of the corporation rests with the management of the company but Shareholder Activists and other Activist Proxies need to always remind management as who is the boss? But how likely is it that the voting behaviour of a single investor will beable to change corporate behaviour?that companies operate on a one-share-one-vote principle, allowing even a shareholder with a small stake in the company to bring up questions about social issues at annual meetings and to file share-holder resolutions. That management in Corporate South Africa is monoplized by white males is an indictment on the quality of Shareholder Activism in this Country. The size of black money held in pensionfunds and other retail investment tools also means that Black Shareholders and their Fund Managers see nothing wrong with the staus quo and cry wolf only hen exposed by the media. Black Investors as a block must understand that investments in companies actually carry voting power and can undo the effeects of Apartheid where they occure.voting on resolutions can have considerableindirect , orsocial , effects. Shareholder Activism goal is not so much the resolution’s passage – they rarely win – as the start of a dialogue with the company. Shareholder acti- vists often accomplish through talk what they cannot through the ballotprocess. One is so dissappointed at First Rand not being held accountable for not trying hard enough to head hunt a black CEO. The question is wether we respect ourselves enough as shareholders to rock the boat even when doing so may prejudice short term financial gain. Common Black Shareholders, Board Directors, activism within boards will bring into focus important issues that companies sometimes do not want called to public attention. The threat of exposure is often enough to motivate companies into taking actions they otherwise would not. Exposure is even more of a concern today,when information travels quickly, is easily available, and is being monitored by socialinvestors, activist groups, the media, and the public at large. Keep on the good work Theo Botha. What happened to you Brian Molefe, did you loose your voice ?
Posted on: Wed, 16 Jul 2014 16:32:09 +0000
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