Shareholder responsibilities

The Malta Association of Small Shareholders (MASS), echoing the concerns of investors who have been loyal shareholders for years in a number of public listed companies which are underperforming and giving a pittance as a dividend or benefits or nothing at all, calls for non-performing board members to stand aside and allow people with better ideas to fill in board seats.

Given its limitations as a new start-up, MASS will be supporting Joseph Bonett as an independent non- executive director candidate for the HSBC and Go plc directors’ election.

The argument is simple – many investors bought shares on the strength of the Malta Stock Exchange listed companies’ prospectuses.

These prospectuses all gave glowing terms of an attractive dividend policy and likely share price appreciation. That policy has not been maintained and nobody has accepted to assume responsibility. To add insult to injury while shareholders are left empty handed they are continuously plastered with PR from these companies.

MASS is also alarmed at the very generous payments of salaries and bonuses to directors and senior managers when it is clear they are not performing. MASS is keen on corporate social responsibility but not in favour of corporate-sponsored activities when little or nothing is first of all paid to shareholders as return on use of capital.

Shareholders who would like to see changes implemented are urged to join the association (nominal membership at no cost; subscribers at €5 a year and

founding members at €20) and to forward their proxy votes in favour of Mr Bonett for the upcoming HSBC and Go plc election of directors. Mail is to be sent to the undersigned at 24 ILEX, Ta’ l-Ibraġ Street, Safi.