Best World

[dreamybear]

In my view, it is not an OPMI shareholder friendly company.

I have written before among the executives hired in SGX listed companies, the two co founders have the second and third highest pay in Singapore, right after DBS CEO piyush. They are paid higher than the executives of Wilmar, OCBC, UOB despite raking in a small % of these companies profits.

https://investmoolah.blogspot.com/2022/0...-ceos.html

Companies that are (i) OPMI unfriendly and (ii) founders own a large % of shareholdings are difficult to value because activist investors need tremendous efforts to buy a significant stake.

All the best in trying to effect a change for OPMI of best world.

My view is that the only way to help is that OPMI band together to vote out the independent directors (IDs) during AGM as it sends a message and Best World will have to go to full lengths to continously find IDs to meet listing requirements. There are a few IDs who work for OPMIs interest, such as at International Cement and Unionsteel; but unfortunately these IDs do not hold many ID posts

Thanks for the compilation. 

Well, looking at the questions in the Q&A, I am inclined to believe that shareholders are feeling aggrieved.
https://links.sgx.com/FileOpen/BWIL%20AG...eID=760716 
" Management needs to clearly layout use of cash for buyback and dividends and not give general answers..... intend to help represent minority shareholders' interest moving forward? .... So, I am afraid your answer about hoarding cash is not satisfactory...."

Suspension aside, BW hasn't been paying dividends for some time while at the same time, the remuneration of some key personnel is arguably on the high side. 

Interestingly, I came across a SIAS webpage which mentions something known as the "oppression of the minority shareholders". I am not exactly clear how it works in a real-life example; wld be grateful if any VB can advise.

I believe companies like Penguin, Challenger, Lian Beng which have tried privatizations in the past did not stop paying dividends before trying again. Even Boustead Projects which failed to privatise and currently suspended, declared a dividend just last month !

As such, it seems to me that BW's case is rather peculiar(and of course, sad). Hope to find out from more experienced VBs whether there are other instances where a SGX listed company(consumer retail type bizness) with a good track record of profitability and strong financials not returning capital to shareholders e.g. dividends or SBB.

I do learn from this whole episode that OPMI are too "fragmented".

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https://sias.org.sg/qa/if-a-company-has-...olders-do/
"....There is also Singapore case law to support the position that should majority shareholders consistently refuse to declare dividends when profits are available (particularly if the majority could be shown to have remunerated themselves only in another way), this may amount to oppression of the minority shareholders for which the minority shareholders may choose to seek redress under our Companies Act. For instance, such redress may be available where a majority shareholder, who is also a director, sanctions the payment to himself of substantial director’s fee, which deprives minority shareholders from receiving returns on their shareholding in the form of dividends. Note that insofar as we aware, such an argument has yet to be successfully tested in the context of publicly listed companies...."

Lian Beng
https://www.dividends.sg/view/L03

Challenger
https://www.dividends.sg/view/573

Penguin
https://www.dividends.sg/view/BTM

Boustead Projects
https://www.dividends.sg/view/AVM

Best World
https://www.dividends.sg/view/CGN