Apropos the editorial "Governance spirit" (August 7), good corporate governance is a rare commodity in India and ordinary shareholders are mere spectators at the annual general meetings (AGMs) of companies. Now, the practice of 15-minute AGMs is floating around. Are AGMs like two-minute noodles? Some companies think so.
To protect shareholders, stock exchanges should have a monitoring framework to keep a check on the AGMs of public limited companies. How can shareholders have a meaningful discussion on different matters at a company's AGM if there are hundreds of them present at the meeting? Such a short meeting affects shareholders' rights and is prejudicial to their interests. Companies are duty-bound to facilitate effective shareholder participation and ensure that the principles of good corporate governance do not suffer. The Securities and Exchange Board of India has rightly frowned up this new practice of short-duration AGMs.
Deendayal M Lulla Mumbai
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number
