But not all shareholders appreciate the cost-cutting efforts.
By Michelle Yeo and Zhang Yi Ting 4 April 2009
Companies are leaving no stone unturned when it comes to cutting costs. They now look to alternative locations for their annual general meetings (AGM) as a means to tighten their budgets amid the current credit squeeze.
BT understands from several companies that they have switched to lower cost locations due to the financial crisis. Some alternative picks are the national library and the arts museum. Another interesting choice is The Grassroots’ Club at Ang Mo Kio, while others choose to host their AGMs closer to home, right in their office auditorium.
Investor relation companies have observed this cost-saving trend among their clients. Financial PR assistant manager Looi Jo- Anne noted: ‘We have seen at least 30 per cent of our December year-end clients opting for other venue alternatives, which tend to be more economical during this AGM season.’
CEI Contract, a public-listed contract manufacturing services company, shifted from Swissotel Merchant Court to the grassroots club this year. Teo Soon Hock, joint company secretary, said that the reason for the venue change was that the charges by Swissotel were too expensive for the company this year.
‘An alternative venue, like The Grassroots’ Club, is very near to Yio Chu Kang MRT. It is also convenient to the shareholders who take either the MRT or bus to attend the AGM,’ he explained.
Mr. Teo added that the change in location also demonstrated that ‘the company is taking necessary measures to reduce cost in times of the financial crisis’.
The cost difference is substantial. For a half-day meeting of 500 people, the Swissotel charges about $40,000, which is more than 10 times that of what The Grassroots’ Club charges.
For companies with shorter invite lists, the Singapore Arts Museum (SAM) is a low-cost alternative. Its central location and relatively cheaper rates have been attracting increasing numbers of corporate events in recent years, said Jessie Oh, SAM’s deputy director (operations and corporate services).
‘The arts museum is centrally located and that makes it convenient for shareholders,’ said a Tuan Sing Holdings spokesman. Tuan Sing Holdings, together with its subsidiaries Gul Tech and SP Corp, will be holding their AGM at the arts museum.
But not all shareholders appreciate the cost-cutting efforts. They have expressed their discontentment to David Gerald, president of the Securities Investors Association of Singapore, who told BT that he and his staff have been receiving calls from unhappy members about the shift of AGM locations to outskirt areas such as Jurong.
For the reasons of location and other factors, hotels also have other advantages which some companies subscribe to. A Singapore Reinsurance spokesman said the company will still hold its meeting at Mandarin Hotel due to the need for a big room for growing attendance numbers.
‘Hotels offer more complete facilities, with microphones and a larger number of seating,’ he said.
Shareholder Denis Distant told BT that he would prefer AGMs to be held in hotels in the central business district, because it shows that the company cares for its shareholders.
‘If companies want to hold their AGMs in industrial estates, they should provide shuttle bus services or reimbursements of travel cost.’
It all boils down to a balancing act between cost and convenience. ‘To many of our clients, it is important to conserve cash during these extraordinary times, and even more crucial to be sensitive to the shareholders’ needs and expectations in return for their confidence in the company,’ Ms. Looi said.
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Firms weigh cost, convenience for AGMs
But not all shareholders appreciate the cost-cutting efforts.
By Michelle Yeo and Zhang Yi Ting
4 April 2009
Companies are leaving no stone unturned when it comes to cutting costs. They now look to alternative locations for their annual general meetings (AGM) as a means to tighten their budgets amid the current credit squeeze.
BT understands from several companies that they have switched to lower cost locations due to the financial crisis. Some alternative picks are the national library and the arts museum. Another interesting choice is The Grassroots’ Club at Ang Mo Kio, while others choose to host their AGMs closer to home, right in their office auditorium.
Investor relation companies have observed this cost-saving trend among their clients. Financial PR assistant manager Looi Jo- Anne noted: ‘We have seen at least 30 per cent of our December year-end clients opting for other venue alternatives, which tend to be more economical during this AGM season.’
CEI Contract, a public-listed contract manufacturing services company, shifted from Swissotel Merchant Court to the grassroots club this year. Teo Soon Hock, joint company secretary, said that the reason for the venue change was that the charges by Swissotel were too expensive for the company this year.
‘An alternative venue, like The Grassroots’ Club, is very near to Yio Chu Kang MRT. It is also convenient to the shareholders who take either the MRT or bus to attend the AGM,’ he explained.
Mr. Teo added that the change in location also demonstrated that ‘the company is taking necessary measures to reduce cost in times of the financial crisis’.
The cost difference is substantial. For a half-day meeting of 500 people, the Swissotel charges about $40,000, which is more than 10 times that of what The Grassroots’ Club charges.
For companies with shorter invite lists, the Singapore Arts Museum (SAM) is a low-cost alternative. Its central location and relatively cheaper rates have been attracting increasing numbers of corporate events in recent years, said Jessie Oh, SAM’s deputy director (operations and corporate services).
‘The arts museum is centrally located and that makes it convenient for shareholders,’ said a Tuan Sing Holdings spokesman. Tuan Sing Holdings, together with its subsidiaries Gul Tech and SP Corp, will be holding their AGM at the arts museum.
But not all shareholders appreciate the cost-cutting efforts. They have expressed their discontentment to David Gerald, president of the Securities Investors Association of Singapore, who told BT that he and his staff have been receiving calls from unhappy members about the shift of AGM locations to outskirt areas such as Jurong.
For the reasons of location and other factors, hotels also have other advantages which some companies subscribe to. A Singapore Reinsurance spokesman said the company will still hold its meeting at Mandarin Hotel due to the need for a big room for growing attendance numbers.
‘Hotels offer more complete facilities, with microphones and a larger number of seating,’ he said.
Shareholder Denis Distant told BT that he would prefer AGMs to be held in hotels in the central business district, because it shows that the company cares for its shareholders.
‘If companies want to hold their AGMs in industrial estates, they should provide shuttle bus services or reimbursements of travel cost.’
It all boils down to a balancing act between cost and convenience. ‘To many of our clients, it is important to conserve cash during these extraordinary times, and even more crucial to be sensitive to the shareholders’ needs and expectations in return for their confidence in the company,’ Ms. Looi said.
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