Issue of post-AGM treat: 'Bento' sets a practical solution

THE issue of what kind of a treat should follow annual general meetings (AGMs) of shareholders of listed companies remains unresolved.

In the past, companies would commonly lay out buffet spreads. They could be made up of simple, catered meals on industrial premises or lavish spreads in five-star hotels. Either way, some bad hats would rush for the food and cart away quite a lot of it even before the AGMs ended. Such behaviour left a bad taste in the mouth for many.

In recent years, companies have unthinkingly turned to issuing cash vouchers upon registration, instead of offering food at the end of meetings. This has backfired in a big way. Many small shareholders are now turning up in large numbers just to collect the S$20 angpows being given away to each shareholder. Some do not even stay for the meeting to start; they collect the vouchers and then head for the next AGM where there is another voucher to be collected.

Given the rush by companies to meet the end-April deadline and consequent heavy bunching of meetings in the last two working weeks of April, there are 20 to 50 AGMs being held each day. One shareholder told me he had collected a hundred dollars worth of vouchers from five companies in just one day. There were Suntec, Capitastar, FairPrice and Foodfare vouchers to be had. He did not attend a single meeting!

Some companies, worried that too many shareholders will turn up at their AGMs if food or vouhers were given, have done away with both. Singapore Technologies (ST) Engineering offered just coffee, tea and water after its AGM. Some shareholders were happy that the crowd was smaller and the AGM more focused on discussing business and prospects of the group. But many shareholders were unhappy with ST Engineering's decision not to treat shareholders at all.

What happened at ST Engineering's meeting was very different from the OUE group AGM where shareholders practically demanded that they be given the Mandarin Hotel's acclaimed chicken rice! The board relented and they were actually given vouchers for the dish at the hotel's Chatterbox cafe!

So, what is the solution to this "problem" of how to treat shareholders after a 90-minute meeting? They feel something ought to be given after they turned up to vote faithfully in support of various resolutions which are often not well understood.

I think it is good to have shareholders mix with each other and with directors and management of a listed company after an AGM. In that sense, vouchers do not help as everyone makes a beeline for the exit of the venue after the meeting. Buffet spreads generate some mixing while the food is being eaten but the rush can often turn ugly. It is often not possible to control the crowd by serving the food, due to shortages of staff.

So a practical solution is to offer set meals in a package or what is dubbed "bento" sets. Everyone gets his or her share and there are often Western as well as Asian sets available. There is mixing between shareholders and senior management. The packages are given out only when the meeting has ended, avoiding the rush and disruption evident in buffet spreads.

One company stood out in the slate of AGMs this period. CSE Global, an engineering systems integrator, offered coupons for both a voucher and a bento set. But the coupons could be exchanged for the cash voucher and bento set only AFTER the meeting! The result was an orderly, fruitful meeting and a leisurely meal after that. Perhaps the likes of ST Engineering can learn from its former sister company, CSE Global.

Mano Sabnani CEO, Rafflesia Holdings Pte Ltd

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