09-03-2003, 11:06 AM
Hi Meer!
As u must be aware that shareholders can be divided into two main types i.e. individual and institutional investors. As far as individual minority shareholders are concerned they need to be educated about investment business. In our country, we don't have a culture where educated people get involved in this matter. Doctors, engineers, professors, etc. think that broker(Dalal) does not belong to their social status. I know my own case, although i was in accounting field, i never thought of buying shares in Pakistan. So more educated people need to be involved.
Also market structures need to be improved. For example, in USA, at a web side called "Edgar" you can get Annual Report of any listed co. You can either download it or u can ask to deliver the actual report free of charge and free of postage. I have received many reports (some of them quite thick) without paying a cent!!
Also u can get quarterly reports, special event reports, from US SEC
site.
As far as institutional investors (mutual funds, DFIs, Banks etc.) are concerned, they should be able to play a more effective role as miniority stake holders. But i think most of them like to confine themselves to a few safe issues.
So i can conclude that we should fight for minority shareholders as a matter of principle irrespective of how some of them behave. We should remember that as auditors we are hired by all investors not just the majority shareholders.
Thank you
As u must be aware that shareholders can be divided into two main types i.e. individual and institutional investors. As far as individual minority shareholders are concerned they need to be educated about investment business. In our country, we don't have a culture where educated people get involved in this matter. Doctors, engineers, professors, etc. think that broker(Dalal) does not belong to their social status. I know my own case, although i was in accounting field, i never thought of buying shares in Pakistan. So more educated people need to be involved.
Also market structures need to be improved. For example, in USA, at a web side called "Edgar" you can get Annual Report of any listed co. You can either download it or u can ask to deliver the actual report free of charge and free of postage. I have received many reports (some of them quite thick) without paying a cent!!
Also u can get quarterly reports, special event reports, from US SEC
site.
As far as institutional investors (mutual funds, DFIs, Banks etc.) are concerned, they should be able to play a more effective role as miniority stake holders. But i think most of them like to confine themselves to a few safe issues.
So i can conclude that we should fight for minority shareholders as a matter of principle irrespective of how some of them behave. We should remember that as auditors we are hired by all investors not just the majority shareholders.
Thank you
