The interests of minority shareholders of public limited companies suffer greatly due to lack of a forum where they can place their complaints and grievances with any hope of redress. The annual general meeting of shareholders of Azgard Nine Limited was held at Lahore on 30th April, 2010.
Rumours were floating that the company had defaulted with the banks or was about to do so, and further that a leading share broker of Karachi had withdrawn his investment from Azgard Nine Ltd, and two directors on the board, representing their interests, had resigned and been replaced by others. The minority shareholders expected that Ahmed H. Shaikh, the Chief Executive of the company, would in person explain the position and the repercussions for minority shareholders.
While the members of the company were assembling at the venue, the company secretary came and stated that Ahmed was there and would join shortly. At the stated time, the company secretary stated that the AGM should be started and the Ahmed would join shortly. The AGM was held and the company secretary was unable to satisfy shareholders. The Chief Executive never appeared at the AGM.
Should the Securities and Exchange Commission of Pakistan not be taking notice of such matters with a view to safeguarding the interests of the minority shareholders. Company secretary Azgard Aijaz Ali confirmed to Business Recorder that neither Chairman nor the Chief Executive or other directors attended the AGM. Ahmad H. Shaikh was not present in the city, he added. Further, the shareholders left fully satisfied as all their concerns were addressed, he added.
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