When you buy shares in a company you are a part owner and you have some rights including voting at the Annual Meeting on the Board of Directors, the auditor and executive compensation. The other rights is to determine if you believe the company is headed in the correct direction. As with most things, some people or institutions own more shares than others and as CEO one of the first things you have to learn and do is count shares to have over 50% plus one. If you cannot count shares, eventually in an election, your side will lose and then you have to suffer the consequences. Generally, most shareholders vote for management, unless they are enriching themselves too much and much of it is either illegal or in the grey area. However all shareholders can voice their opinions.

In an article by Niall McGee of the Globe and Mail, the British activist investment firm Bluebell Capital is calling for the ouster of Glencore CEO Gary Nagle. To put in perspective, Swiss based Glencore is one of the largest commodities trading and mining companies in the world. Their reach is massive. For example, it owns 26 thermal coal mines in Australia, Columbia and South Africa. Thermal coal is used in steel making. Glencore is considering buying more coal assets in Canada through a company called Teck Resources.

Bluebell wrote the proposed acquisition of Teck is value destructive for Glencore.

Recently Glencore owns a grain handler in Canada called Viterra and has merged it into Bunge of St. Louis which is one of the 5 largest grain handlers in the world.

One of the problems with Bluebell voicing its concerns with Mr. Nagle is at the AGM, Mr. Nagle received a 99.43% vote of approval.

Linking to dividend paying stocks, for companies it is good there is wide range of individuals and institutions owning the shares of the company for they all bought for slightly different reasons, but they hold the stock. The slightly different reasons will translate into investors evaluating how the management of the company is doing and is expected to do in the future. With large organizations, there is always something to be done better, but profits matter. For some investors, as long as the company can pay a dividend, it can be held onto. When you see the news about your holdings you have the ability to evaluate and if you do not like it, find an alternative. if you like it possible capital gains will be forthcoming.

There are more questions than answers, till the next time – to raising questions.