More can be done by listed issuers to engage shareholders

I AM not a shareholder of Straits Trading but was impressed by the company’s initiatives to set up a Shareholders’ Club engaging and providing investment opportunities to shareholders, and efforts in enhancing the company’s share price by a whopping 48 per cent over past 3 years ( “Straits Trading shares reasonably priced, but management must continue delivering value” , BT, Sep 12)

In today’s context, listed issuers’ engagement with their shareholders, by and large, is limited to annual general meeting (AGM) Q&A sessions and many see their responsibilities as fulfilled by paying dividends out of the promised percentage of profit!

I came across one CEO who, at the AGM, replied to a shareholder who asked about steps to be taken to improve the company share price, by simply saying that the stock price is determined by the market. Granted, share prices are driven by market sentiments, but certainly there are company-specific issues, for example, in situations where the price is trading below book, where the CEO’s insights and information-sharing on the company’s strategies or action plans would be most welcomed .

Perhaps, taking a leaf from Straits Trading, listed companies might consider that there is a merit in enhancing their corporate image by doing more to engage shareholders.

Ong Kim Bock