The working group set up to recast the Companies Act is reported to have proposed penalising companies and the investors from giving and accepting gifts at the annual general meetings. The proposal is meaningless as it amounts to undue interference in the affairs of the Companies of their shareholders.
It is true that not all companies give gifts. But why should the government prevent those who give to their own shareholders any gift? After all, lakhs are spent every month by the companies for giving donations etc.
There are companies which do not give any dividend for a number of years. The poor shareholders who attend the AGM are given some of their products. Why should anyone object to this? After all, isnt all this the shareholders money?
