CKI Voting Recommendations
5 May 2003
| Company: | Cheung Kong Infrastructure Holdings Limited (CKI) |
| Stock code: | 1038 |
| Meeting type: | Annual |
| Date of meeting: | 15-May-03 |
| Time of meeting: | 14:20 |
| Advice date: | 05-May-03 |
| CCASS voting cut-off | 12-May-03 VOTE NOW |
| Notice of meeting | Click here |
| Voting method: | Webb-site.com will require a poll, all proxies will be counted |
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 | Re-elect Eric Kwan Bing Sing | FOR |
| Re-elect Tso Kai Sum | FOR | |
| Re-elect Barrie Cook | FOR | |
| 4 | Re-appoint Deloitte Touche Tohmatsu | FOR |
| 5.1 | Mandate the directors to issue additional shares | AGAINST |
| 5.2 | Mandate the directors to repurchase shares | FOR |
| 5.3 | Mandate the directors to issue repurchased shares | AGAINST |
Reasons AGAINST
Items 5.1 and 5.3
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.
It is worth noting that since CKI is about 85% owned by Hutchison Whampoa Ltd (0013), in the event of a full 20% placing, the free float would be increased by a massive 133%. That would require quite a discount, and if you are an existing shareholder, you may not be offered any.
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