Does Corporate Governance Exist in Singapore?

[ghchua]

For the Jaya disposal EGM, the proceeds still goes back to the company. In an takeover/privatization, the potential upside is taken away from minorities to the majority shareholders with insider operational info. Not the same scenario.

One can also argue that the upside potential of Jaya is taken away by the disposal, although the proceeds still goes back to the company.

Similarly, for takeover offers, it can be from a third party not related to the majority shareholders, so no advantage of insider operational info.

I guess we have to take each case as unique and react accordingly.

[opmi]

Well, I am always skeptical on comments that minority shareholders should get what they want, over-riding the majority shareholders' wishes. That is constricting to my version of "fairness".

There are means for minority shareholder to "reject" special resolutions with 10% AGAINST votes, but we do see many excuses not to do so. They are not even bother to fill-in the paper proxy form, and send to Chairman to vote on their behalf. FYI, nowaday, resolutions are mostly voted by poll.

One last point, if your interest doesn't align with majority shareholders', you always has a choice, sell you share and walk away. I had done so before

Yes. Minority shareholders have a choice to walk away and accept their 'fate'. They also have the alternative to organize and resist collectively.
In life, you cannot keep walking away.

[cif5000]

The worst I had swallowed was with Hersing. The takeover price valued the company at <$150m and the guy quickly sold the agency business within the next 12 months with an asking price of $150m. How/why did minority shareholders (including one substantial SH) accept the offer in double-quick time I don't know. I don't believe everyone is stupid.

http://www.stproperty.sg/articles-proper...m/a/131641

What to do? Luckily for people like us, we have other stocks to choose from. Looking back, it's actually a blessing because the money had been forced to go into better stocks...despite the "loss" from unrealizable profits.

[SpeedingBullet]

With regards to value investing, it really pays to research thoroughly on the track record of the board apart from just the numbers. And that's the tougher part as it's sometimes intangible/qualitative in nature.

There are perhaps a handful of companies here that are well-run, shareholder-friendly and fiscally disciplined. But like I said earlier, it's only a handful. I really do hope we could see more.

Call me evil but I'm actually hoping for more Glaucus/Muddy Waters-like attacks on our companies here in SGX. It keeps management on their toes, makes this place exciting and gets people talking. Too many lame duck shareholders around (which prolly explains the super low vol. in the overall markets recently).