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Each season, there are companies that spend a lot of money on holding their annual shareholders’ meetings (ASM). Some are forced to organise a second or even a third meeting. After checking off all the requirements for an ASM to be held, actually moderating a meeting is still difficult because some shareholders are not aware of their rights and obligations.
At the 2017 ASM of Cuu Long Petro Gas Service-Transportation Joint Stock Company (HNX: PCT) held on May 18, though the company has met all targets set by its shareholders for the fifth consecutive year now, there were still disgruntled shareholders and the meeting lasted from 8 AM to 6 PM.
|PCT reached the targets set by its annual shareholders’ meeting for the fifth consecutive year|
According to the audited 2016 business results, the company earned a revenue of VND955.41 billion ($41.1 million), with a pre-tax profit of VND26.55 billion ($1.17 million), beating the target by a full 40 per cent. PCT submitted VND20.41 billion ($900,000) to the state budget, equal to 46 per cent of the target.
These are positive results in the context that PCT has gone through significant difficulties in its core business in the past year: its taxi business was subject to heavy competition from Uber and Grab, its office car business saw a big drop in revenue and 60 per cent in profit, because PetroVietnam Transportation Corporation (PVTrans), a big shareholder of PCT, asked the previous leadership board to transfer most of the transportation orders to a subsidiary of PVTrans.
PCT meets the same challenges at its ASM as most other companies. Some shareholders disregarded the rules of the meeting and spoke out of turn, interfering with orderly conduct through sheer power of voice. A shareholder asked the organiser to let shareholders vote by a show of hands instead of using the voter papers as specified by the event rules.
Despite these difficulties, the company showed that it respected all opinions and acknowledged all shareholders. After a 10-hour meeting without a lunch break, the shareholders ratified the meeting minutes and the resolution at 6 PM.
The chairman of the meeting emphasised that due to the company leadership’s great effort, PCT successfully divested its taxi business last year, keeping the office car business alive and expanding to water transportation by investing in a 9,000-tonne barge specifically built to transport coal and other goods. The chairman added that if the company decided to sell the barge, it would make significant profit.
PCT also made successful investment in the bond market. Regarding the incident when former leaders illegally transferred PCT assets to another entity, the company has filed a police report and mitigated part of the damage.
The new board of director and the new company leaders promised to abide by the law, to build and implement measures necessary to help PCT produce strong growth, and to serve the benefits of customers and protect the rights of shareholders and employees.
The company is going to celebrate its tenth anniversary in June 2017.