The 19th meeting in Project Poll, and we urge investors to vote against the issue mandate, to help protect their investment from dilution.

Shanghai Industrial voting advice
19 May 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%.

© Webb-site.com, 2003


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