Forum Archive Index - May 2001

["Peter Maiden" <pmaiden@xtra.co.nz>]

Brian - Better later than never but that was a brillant piece on what a shareholders association should be striving to do.

 

Thanks for the contribution

 

I've just read it again and the last few paragraphs are worth repeating for those who might have missed it the first time around.

 

The thought provoking paragraphs from Brian's post were -

The formation of an organization of small investors, if encouraged and guided by people of "integrity, intelligence and energy" will do a great deal to highlight the concerns of the New Zealand investment community.

However, the goals and objective of such an organization can not be achieved if it’s energies are channeled solely towards highlighting negative aspects of corporate New Zealand. Such an organization must also clearly exemplify corporations and management who consistently show the highest level productivity, efficiency and above all else openness and integrity towards their owners, the shareholder.

This will arguably achieve two goals. Firstly, over the short term, it will highlight the fact that there is more often than not a direct correlation between the standard of management and the performance of a company. This in turn will empower the investor with the knowledge and security that they are able to direct their investment dollar towards those companies with management displaying these traits.

Secondly, and by default of the trickle down effect, it would be hoped that by holding up these companies who illustrate the highest standard of behavior, then other companies would also endeavor to raise their own standards thus improving their performance and ultimately attracting more investors.