Sunday, July 19, 2009

MK's Attitude is Grotesque

They want Rs300,000 from Awadh Balluck, a representative of our airline's small shareholders' association, to include his common sense motions on the agenda of the July 22 meeting. These motions include that the CEO's salary be brought to Rs1,000 per month until MK returns to profitability, a reduction in the number of board members to seven with one from the small shareholders' group, directors getting 2 free tickets per year only while serving the company, that a hedging specialist be hired and that a commission of inquiry be instituted to find out about the hedging scandal. These are very reasonable motions consistent with basic notions of corporate governance.

The funny thing is that a couple of years ago he didn't have to pay anything for similar motions. Hmm, what's exactly is going on here? Here's one way out of this. Get the NPF to pay the Rs300k for corporate governance's sake - a bit like what CalPers has been doing for ages. The Prime Minister, of course, has to share some responsibility in this given that he pulled the CEO out of his hat.


Ashfaq said...

We are lucky however that the scandal has been brought to daylight and in mauritius .. this is extraordinaire that indeed something is being done about it .. even something small..
What would u say about the hedging scandal of STC ?? still nothing to date.. everyone still paying the errors of STC

Kranti said...

Ashfaq is right: even the smallest action may shed light on many big scandals.
There is an association being put up to be called something like Listed Companies Minority Shareholders Watchdog Group to watch on the interests of small shareholders in all companies listed in the Stock Exchange.
Sympathisers and, of course, shareholders may join.
Sanjay, can you help via your blog?

Sanjay Jagatsingh said...

Yeah, we still don't know much about the Rs3 billion mess at the STC. That sounds like a good idea Kranti. Sure, will stay tuned and spread the word here and elsewhere.