Shanghai Industrial Holdings Limited AGM 2003

Company:	Shanghai Industrial Holdings Limited (SIH)
Stock code:	0363
Meeting type:	Annual
Date of meeting:	28-May-03
Time of meeting:	15:00
Advice date:	19-May-03
CCASS voting cut-off	23-May-03 VOTE NOW
Notice of Meeting:	Click here
Voting method:	Webb-site.com will require a poll, all proxies will be counted
How to vote:	See our voting guide

Note to journalists:
We have up to 4 proxy seats available inside this AGM. Please contact us if you want one.

Item	Description	Vote
1	Adopt the accounts	FOR
2	Declare a final dividend	FOR
3.1.a	Re-elect Chen Wei Shu	FOR
3.1.b	Re-elect Lu Da Yong	FOR
3.1.c	Re-elect Li Wei Da	FOR
3.1.d	Re-elect Lu Yu Ping	FOR
3.1.e	Re-elect Cao Fu Kang	FOR
3.1.f	Re-elect Wen Song Quan	FOR
3.2	Authorise board to fix its own remuneration	FOR
4	Re-appoint Deloitte Touche Thomatsu	FOR
5	Mandate the directors to issue additional shares	AGAINST
6	Mandate the directors to repurchase shares	FOR
7	Mandate the directors to issue repurchased shares	AGAINST

Reasons AGAINST

Items 5 and 7

Webb-site.com urges all investors to vote against the general issue mandate for all listed companies, for the reasons explained in Project Vampire, unless they comply with the recommendations set out in that article. The non-pre-emptive issue mandate allows management to choose the shareowners by allotment of shares. This corrupts the governance mechanism. Shareowners should govern management, not the other way around. If a company wishes to raise cash by issuing shares, then it should do so by rights issue.

If your company offers new shares to other investors at a discount, but not to you, then your company is transferring value from you to the new investors. Their gain is your loss. That's why we believe an issue for cash should be done by rights issue, failing which it should be limited to 5% of existing issued shares and a maximum discount of 5%.

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Voting recommendations

Reasons AGAINST

Items 5 and 7