It’s AGM season again and there are simply too many of these to attend this month. I was at the Barclays one last year and will try and visit some new companies this year.
Mwananchi attended the 2006 Barclays AGM and was kind enough to contribute his report:
Held at KICC. Well organized & surprisingly not crowded. Started on time. Before you ask... there were lunch packs provided... more on that later...
BBK pays hefty dividends so not a problem on that end but there was a new Chairman Okomo-Okello also on TPSEA. (Serena)
In spite of the Chairman's request that only financial/annual report related questions be asked prior to the adoption of the accounts, the usual UNRELATED questions started!
Questions & Answers:
- Lunch doesn't take into account dietary needs. Adan (Adan Mohammed is the Barclays MD) answered that it is not easy to have each shareholder's needs provided for. The lady asking this question was within 3 metres of me & seemed very upset about lunch...
- Freebies like umbrellas. Adan (no-nonsense) said giving freebies to the attending shareholders is not fair to those who could not come.
- Transport/reimbursement from Shaags: Same answer as Freebie
- Nothing or minimal questions on the accounts (Accounts then adopted)
- Protests from one shareholder (aka VituVingiSana) who had relevant accounts/FS questions! After much mumbling allowed to ask why growth in assets doesn't match overall industry. Charles (FD) explained a major customer withdrew his "holdings" after the liability matured.
AOB:
The non-financial questions were answered at this stage. There was an EXCEPTIONALLY long letter read by an old man who protested about lack of a Barclays branch in his town, short opening hours, high fees, etc.
Complaints abounded on the delays by BARS, removal of chairs at BARS offices, etc. The Marks of BARS were asked to stand up & be recognized! Board was going to look into the matter.
So there was a boxed lunch but had to leave ASAP so no idea what was in it but the management ended up at the Inter-Continental Hotel.
4 comments:
Minister Kimunya is certainly more aggressive than his predecessor - he has notified banks to submit new charges to him beforehand (something Mwiraria initiated but did not follow through with), left the CBK governor hanging, will probably reactivate the 500m minimum capital rule in the June budget, thereby forcing some banks to merge and now is likely to, as you say, allow the in-duplum rule (which will be popular with wananchi and MP’s) – the question is, can it be applied retro-actively? Legally and practically not, but – banks bad debts will shoot up as all customers refuse to pay until their existing loans are renegotiated (also President Kibaki has already rejected the in-duplum clause, but can he do it again?)
The In-Duplum rule is a mockery coz in Kenya:
- Interest rates are high partly coz of government borrowing. The GoK pays 14% on 10 year T-bonds thus why should a bank lend at less than 20% for 10 years. There is no risk in GoK bonds whereas customers need to be serviced & can default!
- Poor administration of "justice" thus a bank takes 5 years to recover its funds & even then has to jump thru hoops. Witness Barclays attempts to recover funds lent to matiba's companies. Some ignorant shareholder (2004's AGM)even asked why Barclays was going after Matiba & the Bank should "forgive" the loan! Adan (MD) answered that it is the shareholders' money & the bank has the obligation to recover the funds for the shareholders. In addition, Adan should have proposed that ALL shareholders in favor of matiba not repaying the loan should have their dividend cheques used in a harambee to pay off the loan! I bet that would have shut up the silly nonsense from these shareholders!
- Encourages default thus making the overall "loan" high enough to invoke the in-duplum rule.
- Discourages long-term lending by banks which is counter-productive & will Kenya down to get-rich-quick mentality where everything is for the short-term.
What about the ABSA deal? / no one asked or are we waiting for an expose' from our notoriously ill-informed business journalists who 'discovered' Meralli- 2 years ago, Wanjiku Mugane-3 years ago. and are still to 'discover'
First Chartered or the Baloohbhai(who is one of the largest individual shareholders in Kenya)
But do you think Mnister Kimunya will see through the privitisation of NBK and Consolodated bank as he has indicated, given the vested interests around the issue?
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