Magnus Energy minorities show that collectively they are a force to be reckoned with

THE stock price chart of Magnus Energy over the past five years is not a pretty sight to behold. It looks like an electrocardiogram (ECG) of a patient who is suffering from a complete heart block, or one who is clinically dead.

Hence, it was not surprising when shareholders of the Catalist company shot down all the 10 resolutions at its Oct 30 annual general meeting (AGM) and booted out the chairman and two directors, as well as independent auditor Moore Stephens.

Shareholders of Magnus - an investment holding company which derives nearly 70 per cent of its revenue from an oil and and gas equipment distribution business through its USA operations in Mid-Continent Equipment Inc - take a bow. They have shown what it means to be good investors who hold management accountable. They have played a beneficial role in the market by ensuring that poor corporate governance and strategy don't persist.