From time to time, shareholders of a public-listed company would receive circulars or hear announcements detailing their company’s proposal to acquire another company. Many minority shareholders would simply ignore such developments assuming that they are just ordinary business transactions. However, what they fail to realise is that their indifferent attitude may actually allow companies to conduct shady deals at their expense.

Shareholders have the responsibility to constantly monitor the activities of the companies they have invested in. They should always carefully scrutinise all developments within the company. Close attention should be given if the company is proposing an exercise which is peculiar to its business activities, and if shareholders choose to be indifferent, they run the risk of being cheated. This article will illustrate how shady deals can be cooked up if shareholders fail to take an interest in their company’s affairs.

The story…