The Malta Association of Small Shareholders is doing its utmost to make sure that minority shareholders are able to a fair deal from their investment.

These are a few of the propositions the association is making to various companies listed on the Malta Stock Exchange:

1. It is practically impossible for minority shareholders to raise resolutions during a company’s AGM because of the fact that for most companies this requires the support of a very large number of shares. Therefore, MASS is proposing that the companies amend their Memorandum & Articles of Association to reduce the number of shares necessary to raise a resolution.

2. It is proposed to hold a Shareholders’ Day when the company in question allocates some money that goes to increase the dividend due to shareholders. Such a day could take place once every three or five years. This would help to show the company’s appreciation for its shareholders, recognising the fact that, without the shareholder, the company would not even exist.

3. Companies are encouraged to increase the number of non-executive directors. This would help to ensure best practice in the decisions that are taken by the board. The non-executive directors would be independent from the company because they would not be running it themselves. Therefore, they would help the company to take decisions that are not in favour of a particular person within higher management but which ensure that the company is being run efficiently and profitably.

Here, I would like to emphasise that the directors have to be truly independent, not ones who have been working for the company all their lives and have now resigned or retired.

4. Another practice that is being encouraged is that when the dividend is announced the company would also award bonus shares to the shareholders. This is a means whereby funds, which have been accumulated during the years and which have been kept as retained earnings, are used to increase the company’s capital.

I am one of the persons who have been approached by MASS and have accepted to seek election as director on the board of HSBC Bank. I, therefore, urge the shareholders of HSBC Bank to vote for me during the AGM to be held on April 18.

Those who cannot attend and would still like to vote for me can send their signed proxies to the Secretary, MASS at 46, St Bosco Borg Str., Fleur de Lys, Birkirkara.

If elected, I will do everything possible to further your interests.