Till now whenever an annual general meeting was held, the company did its best to provide best of all services to their shareholders in the form of gifts, refreshments, food or gift coupons, etc. But next time you go to any annual general meeting then don’t be surprised to find it similar to a dry crowd gathering similar to an airport lobby.
Recently ministry of Corporate affairs have proposed some changes with regards to the code of conduct during a company’s annual general meeting. According to those new rules and regulations, No tea, coffee, snacks will be allowed to distribute. The rule have even put a ban on distribution of any kind of gifts. Even food or gift coupons distribution are also considered to be misconduct as per law.
The reason behind all these rule are the physiological research done by the ministry of corporate affairs upon the minds of the investors. According to the ministry, distribution of refreshments like tea and coffee during the proceedings holds the attention of shareholders and the corporate companies manage their way to pass some resolutions without being questioned by any of the serious investors. According to the ministry of corporate affairs, the serious investors should be given chance to ask certain question regarding the resolutions, but due to the mad rush for securing gifts given by the companies, they are unable to do that due to mind diversion.