3 June 2003
2003 Warren Edwardes discussed "Fat cats on the board"
On 3 June 2003 for
the BBC2 television programme,Working
Chiles interviewed Patricia Hewitt, the UK Government's Trade and Industry
Secretary, on the Fat Cat director syndrome - Boards getting substantial
payoffs on producing record losses.
aired his idea of
only giving only one vote to each
shareholder. This sounded great and Patricia
Hewitt said it hadn't been suggested before. But on
reflection I believe that it would make things
- worse without an amendment.
Recall that mutuals such as The Equitable Life and the
Nationwide Building Society have one member one vote. But the proxy votes held
by the chairmen tend to rule the roost in these situations and mutuals have
the least accountability.
So I suggest that in addition to, or instead of, one
member one vote - effectively splitting shares into voting and non voting
shares with only a single voting share held by any individual
person or company - proxy voting should be limited to one proxy vote per
person to provide for the infirm and elderly.
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