Just to show a case where a resolution is not passed. Unfortunately, as you rightly pointed out, most shareholders are only interested in the food and vouchers without understanding the resolutions. At least this offers a glimpse of hope.
Hopes more minority shareholders can band together to force change in the company.
YOU are part-owner of the company. Take more effort in understanding it.
I am not sure the failure of this resolution to pass is a good thing for Cambridge Industrial Trust unitholders or that it says something about how good CIT is as an investment. Over the last year, DPU is down, gearing is up, and it's been one of the worser-performing REITs. In fact Cambridge is well known for its drama, which is not something ideal in an investment, unless you are a trader
The reasons this sort of thing doesn't happen in 90+% of listed companies is (1) there is one or a few substantial shareholders, and (2) they have confidence in the board and management. If anyone does not agree with the board's direction or its people, ideally you would want that someone to come in, buy up enough shares - or even make a general offer - put its own people on the board, then steer the ship around or elsewhere.
Instead it seems CIT's board and management are directionless. Tong Jinquan is the biggest shareholder but he hasn't put himself or any kakis up. In fact no members of the board have changed since last year. There is much news that the majority shareholders of the manager - who do not own any substantial stake in CIT itself - are trying to sell their stakes, but nothing confirmed yet. It seems like nobody wants the job of running CIT!
Sure there was a shareholder revolt, but at the end of the day, somebody still has to lead, and it can't be the uncles queuing for the buffet. What CIT is is just a stalemate.
