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Allegations about Stamford Land's AGM false
THE purpose of this letter is to address certain allegations that were raised against the company in the Facebook posting by a shareholder of the company on Jul 27 titled "Abhorrent board behaviour at Stamford Land AGM". This post was republished in a letter that the shareholder wrote to The Business Times on Jul 31 titled "Stamford Land board's high-handed conduct at AGM leaves bitter taste", on the purported events that took place at Stamford Land Corporation Ltd's annual general meeting on Jul 27.
The company has been wrongly accused in the Facebook post and the BT letter:
- of having poor shareholder communications, specifically restricting the number of questions that each shareholder may ask to one;
- that the board of directors and management had asked a shareholder who attended the 2018 AGM to quench his thirst in the toilet; and
- of having poor corporate governance by paying the chairman of the Board and the chief executive officer remuneration at the expense of not paying more dividends.
The company sets out in paragraphs 1 to 19 of the letter to shareholders posted on SGXnet on Aug 31 its response to these allegations, save to say at this point, that:
- there were no restrictions to the number of questions a shareholder may ask at the 2018 AGM;
- neither the board nor management had asked any shareholder to quench their thirst in the toilet;
- the considerations in the payment of the remuneration of the directors are independent of the considerations in the declaration of dividends;
- as explained at the 2018 AGM, the remuneration of the executive chairman and the CEO rose in accordance with the formula adopted by the Board following the advice of an independent human resource consultant, which were then reviewed by the independent remuneration committee of the Board, and adopted by the Board (with each of the directors abstaining from voting on his own remuneration); and as explained at the 2018 AGM, the company took into account the potential earnings forecast of the company, the sustainability of the current dividend over the course of the next few years and the resources required for Stamford to undertake any projects for the coming years, when declaring its dividends. Please refer to the letter to shareholders posted on SGXnet on Aug 31 for the details.
Stamford Land Corporation Ltd