Recent news

A paper prepared by the UK Shareholders’ Association on the prudence concept in accounting has been published today. Please see the attached file to read the full paper.

Thanks to Dr Kamal and Mr Stolojan for arranging this meeting, and for giving me the chance to represent the views of investors. I am somewhat overawed by the experience and skills of my fellow panellists.

My background is that I am a member of the FCA, a former auditor, now working with UK Shareholders’ Association.

Free event on Monday 10 June 2013 in London
Find out more at:
High Pay Centre http://highpaycentre.org/events/executive-directors-remuneration »

With the ongoing financial problems in the World it is a more than usually uncertain time for investors. The problems in the Euro-zone continue with new crises flaring up every few months. Developed countries seem unable to reduce debt to comfortable levels. The banks continue to be dysfunctional. The UK and many other countries seem to be permanently in danger of slipping back into recession. The bond markets offer the lowest yields ever and may implode at any time.

April 2013

Housebuilder Persimmon’s AGM takes place at York Racecourse on Thursday, April 18, but for the company’s management this will be no gamble. Last September, shareholders were persuaded to approve what the board has called a ‘long term incentive plan’ and now the remuneration report reveals that virtually all available grants have been made. UKSA’s detailed analysis of the LTIP shows that the so-called incentive is almost non-existent and these grants are little better than gifts.

UKSA has contributed its views to the The Kay Review of UK Equity Markets and Long-Term Decision Making. Rt Hon Vince Cable MP, Secretary of State, Department for Business, Innovation and Skills recently appeared before the HoC Business, Innovation and Skills Committee. Click here
http://www.parliamentlive.tv/Main/Player.aspx?meetingId=12925 to watch the complete meeting.

When will the government stop depriving investors of ownership rights?

March 12th was ‘Ownership Day’. This worthy initiative, hosted by parliament, was intended to encourage the active exercise of shareholder rights, by and on behalf of all investors in company shares. But one essential ingredient was missing. Savers investing through nominee accounts cannot enjoy the legal rights of ownership, because this was blocked by parliament when it passed the 2006 Companies Act.

An EU threat to require the abolition of share certificates was originally reported to UKSA members in the association’s magazine The Private Investor in March 2012. The proposal is that all shares should be held in central securities depositories (CSDs). Discussions continue within Europe on the draft Regulation, to be known as the CSDR. UKSA understands that the UK government continues to resist such a change being made mandatory.

Shares in Persimmon plc have been rising (as have most housebuilders’ recently), so its shareholders will be happy. But something has happened which may leave its shareholders far from happy in the future, even though the majority voted for it. It’s called a ‘long term incentive plan’, or LTIP for short.

Are Alternative Investment Market (AIM) shares right for ISAs?

Chancellor George Osborne announced in the Autumn Statement that here is to be a government-led consultation on the possible opening of ISAs (individual savings accounts) to AIM stocks. The UK Shareholders’ Association will participate in this.

The proposal is probably intended as a gesture towards adding another source of capital for cash starved smaller developing businesses.