NEW DELHI, December 30: Upset shareholders of Daewoo Motors India Ltd almost succeeded in stalling proceedings at its annual general meeting (AGM) on Tuesday as the company did not disburse gifts this year.The arrangement made by the company to issue passes for the meeting and coupons for refreshment was also found inadequate by the shareholders, which led to several disruption of the meeting.
The day was saved by the firm handling of the situation by managing director S G Awasthi. Irritated shareholders, who had to wait in queue for long period to collect coupons for refreshments, protested loudly thoughout the meeting until Awasthi intervened to direct company executives present at the meeting to look into the problem.
The company executives claimed that they had made all arrangement to ensure smooth conclusion of the meeting and that the progress was hampered by the speed of the computers deployed at the site to process the attendance. The shareholders, however, complain that they had faced similar
problems last year.
A section of the shareholders at the meeting also demanded that the company should have given some gifts as it had not declared any dividend this year. Other requested the company to ensure that they be awarded next year.
One of the shareholders, disappointed with poor performance of the company's scrip at the bourses, even suggested that the company should learn to manipulate the prices. ``Awasthi or somebody in the company does not know how to manipulate the share prices,'' said this shareholder, adding that the company should engage the services of an expert for this purpose.
This shareholder also felt that the company has lost initiative in the recent months while another shareholder felt that the company was not managing its funds properly.
Yet another shareholder felt that the directors should not sell their stakes in the company if they were confident of its performance in future. This shareholders felt that diluting of holding by the company's directors would put pressure
on the company's share price.
Responding to shareholders queries and concerns, Awasthi stated that contrary to speculation in the market, the company was doing well. ``Cielo has 22 per cent market share in the mid-size car segment,''he added.
Rejecting suggestions that the company had lost initiative, Awasthi stated that the company has lined up a range of products for launch over the next year and half. The mini-car would be unveiled during the Auto Expo 1998 in January along with about seven models of buses.
He added that the buses would be launched in March. The company will also continue to upgrade the Cielo cars, he said.
Daewoo Motors India has also received an order from its parent company to supply 15,000 engines for export to Korea. These engines would be fitted into cars which would be exported to market such as the US.
The company has also achieved indigenisation level of 55 per cent of the value of the car, Awasthi informed the shareholders. The shareholders has also passed all the
resolutions listed for consideration without modification.
Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.
