A Letter to Shareholders

In: Business and Management

Submitted By ltian
Words 715
Pages 3
March 8, 20xx

To the shareholders of Best Motor Works:
As the new CEO of Best Motor Works, It is my goal to position Best Motor Works as a niche market leader for luxury vehicles. This will be performed through a clearly defined vision, mission and corporate strategy.
Our Vision: Best Motor Works strives to produce the finest vehicles in their class, providing our customers with quality and service second to none.
Our Mission: Best Motor Works will create maximum value to its shareholders by providing our customers with quality vehicles that meet or exceed their needs and expectations in each class. We will remain on the cutting edge of technology, and keep our product line fresh through innovation and superior service. It’s in our name, our customers expect it, and it’s how we do business. We are Best.
At Best Motor Works, we are aware of whom our customers are and the best way to satisfy their needs through a product line of vehicles that are tailored to the important concerns of each of their intended users. We currently manufacture a line of three automobiles, the Boffo, the Buzzy, and the Beaut. The Boffo is our offering to the family shopper, offering safety and quality. The Buzzy is the sports car, providing unequalled performance in its class. The final car in our line-up is the Beaut, providing luxury and styling to those that can afford the best.
However, an excellent vehicle selection is not enough to sustain us into the future. It is our belief that the automobile market is dynamic in nature, calling for manufacturers to be the same. Our first period produced lower than expected sales and a significant decrease in net income. This was due to costs from extensive investments in technology and new vehicle development. Through a focus on reinvestment in technology, superior dealer support, and…...

Similar Documents

Shareholder Empowerment

...Introduction: Shareholder empowerment in Malaysia Presently, Shareholders of public companies in Malaysia have limited power in making corporate decision. The precise scope of the powers of each organ is defined by the company’s articles of association, general principles of company law and the Companies Act 1965. Directors usually have the power to manage the business of the company, with the members being entitled to vote only on limited matters expressly reserved to them by the articles of association or the Companies Act 1965. Although they are granted the rights to make decision on the management board and the approval rights in passing directors’ proposals, some shareholders find it inadequate as the current approval rights is a fairly weak tool in controlling agency problem. With wide and in-depth coverage of ongoing corporate tussles, shareholder awareness has improved to the point that shareholders now want to hold management accountable to proper corporate governance. Hence, in this essay, the issue of whether Malaysia should encourage shareholder empowerment to improve corporate governance in companies and thereby attract more foreign direct investment is discussed. To support my arguments three main decision-making power; rules-of the-game, game-ending and scaling-down; as well as the approval rights and proposal rights are discussed. Definition of Shareholder empowerment Shareholder empowerment means the increasing rights given to shareholder to......

Words: 2699 - Pages: 11

Shareholder Letter Example

...TO OUR SHAREHOLDERS: One of the traits that characterizes our company’s performance in 2004 is “continuous improvement.” We’ve enhanced our processes, introduced new and innovative products throughout the year and improved our financial performance. Our success results from the continued execution of our long-term growth strategy and our employees’ dedication to incremental improvements each and every day. Bard’s core values of quality, integrity, service and innovation were clearly demonstrated by our employees this year, and we appreciate their passion, loyalty and dedication. The ultimate criterion upon which we judge our success, however, is the ability of our products to improve the lives of patients through the extension or enhancement of their quality of life and clinical outcomes. The Bard products featured on the following pages of this report were chosen as examples of attaining this important standard we’ve set for ourselves. The stories illustrate the collaborative and innovative spirit that permeates our daily work on behalf of patients all over the globe. 2004 Financial Highlights • Net sales growth: 16% as reported; ongoing net sales growth: 14% (in constant currency) • Gross profit margin: 60.1% versus 57.5% in 2003 • R&D expenditures: $111.6 million, up 28% over 2003 • Net income: $302.8 million (up 80%) as reported • Net income: $262.7 million (up 29%) excluding items identified in the financial highlights on page 1 • EPS: $2.82 (up 76%) as......

Words: 3041 - Pages: 13

Activist Shareholders

...at the ketchup to beans group. Other targets have included the restaurants group Wendy's, where he applied pressure to have its doughnut business disposed off. He also recently emerged as the largest shareholder in the jewellery group Tiffany's, with a 5.5% stake, and was thought to have been one of the unsuccessful bidders for Aston Martin, the luxury car marque which has just been sold by Ford. Mr Peltz, 65, made his name in the corporate raider arena on Wall Street in the 1980s. He made his first fortune with the acquisition and merger of Triangle Industries and National Can in 1985, selling the company five years later for a profit of more than $800m (£413m). He has had dealings with Cadbury in the past, having sold his Snapple soft drinks business to the group in a $1.45bn deal in 2000. He had bought it three years earlier for just $300m Trian campaigned stridently for Heinz to increase shareholder value. The outcome? Even before the results of the proxy were announced, Heinz management announced a $265 million cost-cutting plan and a $1 billion share buyback program the British maker of Dr Pepper soft drinks and Dairy Milk chocolate, said Thursday that it planned to split off its American beverage unit from its candy businesses, following pressure from shareholders, including the billionaire Nelson Peltz Last year, Mr. Peltz waged a six-month battle at Heinz, demanding five board seats for his 5.5 percent stake and finally settling for two. He pushed for the sale...

Words: 987 - Pages: 4


...shareholder is simply an individual, organization, or company that legally own share(s) of stock in a joint-stock company. By owning shares of stock, a company’s shareholders collectively own the company itself and therefore have the right to vote on decisions that affect how the company is run. This usually means the shareholders as part owners will push for company actions that increase their own financial returns. Definition: A company that uses the shareholder approach to conducting business typically views the impact of business operations on profit. In addition, the length of concern for changes in business operations is usually short-term; such as focusing on meeting quarterly or annual results. Attributes: * Shareholders are primarily concerned with the company’s bottom line. * In a traditional business models, shareholders have the primary influence on the company’s strategy, usually resulting in business model with the foremost objective to increase the company’s stock value. In a shareholder business model, a company only addresses the needs and concerns of four parties: investors, employees, suppliers, and customers; with investors and customers receiving the most attention. Stakeholder approach: To make an analogy, stakeholder and shareholders are like sparkling white wine and champagne. All champagne is sparkling white wine, but not all sparkling white wine is champagne. Similarly, all shareholders are stakeholders, but not all stakeholders......

Words: 857 - Pages: 4

Shareholders Wealth

...Shareholder Wealth Maximization Shareholder wealth maximization is the idea behind trying to drive a stock's price up. The shareholders are the actual owners of the company. By driving the price up the company becomes worth more than just the value of its assets. The sum becomes greater than the value of its parts. It becomes worth more to keep the business running than it would be to sell off the parts. Maximizing shareholder wealth is often the most important goal of a company; however, the bottom line is that profit is required to increase the dividends paid out with each common stock that constitutes shareholder wealth. Thus, an effective manager will be more concerned with the primary means of profit-making within a company. For example, Coca-Cola makes money by maintaining a powerful brand name and manufacturing an enjoyable consumer product. To maximize shareholder wealth, Coca-Cola must first maintain the status of its brand and product. Coca – Cola is one publicly traded corporation that you believe is maximizing shareholder wealth their vision is “maximizing return to shareowner being mindful of our overall responsibilities.” The company’s major goal is to further increase stake in global beverage market. Coca cola works to use their assets to become an even stronger and more competitive company for is shareowners benefit. Provide the public with beverages that satiates their consumers’ wants and needs. Partner with companies where loyalty is and maximize......

Words: 682 - Pages: 3


...Pension Benefits Table 3.8 Nonqualified Deferred Compensation Table 3.9 Other Potential Post-Employment Payments DIRECTOR COMPENSATION DISCLOSURE 4.1 Director Compensation Table 4.2 Narrative Disclosure of Director Compensation ANALYSIS OF RISKS RELATED TO COMPENSATION FOR ALL EMPLOYEES COMPENSATION COMMITTEE ISSUES 6.1 Compensation Committee Report 6.2 Compensation Committee Practices and Procedures 6.3 Disclosure of Compensation Consultant Fees 6.4 Compensation Committee Issues Involving Related Person Transactions 1 3 4 4 6 6 10 11 13 15 17 20 22 23 28 29 33 34 37 39 42 44 46 47 49 49 51 51 52 53 54 3.0 4.0 5.0 6.0 RR DONNELLEY 7.0 REPORTING COMPENSATION ON FORM 8-K 7.1 Item 5.02 of Form 8-K 7.2 Companies Must Report Shareholder Voting Results on Form 8-K Within Four Business Days BENEFICIAL OWNERSHIP TABLE 8.1 Management Shares Subject to Stock Pledges 8.2 Directors’ Qualifying Shares EFFECT OF NEW RULES ON FOREIGN PRIVATE ISSUERS AND SMALLER REPORTING COMPANIES 9.1 Foreign Private Issuers 9.2 Smaller Reporting Companies 55 55 57 58 58 59 59 59 59 60 61 8.0 9.0 10.0 PLAIN ENGLISH REQUIREMENTS 11.0 EFFECTIVE DATES FOR SEC’S DECEMBER 2009 AMENDMENTS APPENDICES Appendix A: Full Text of Regulation S-K Items 402, 403, 404 and 407 (as amended through December 2009) Appendix B: Excerpts from the December 16, 2009 Adopting Release Appendix C: Excerpts from the July 26, 2006 Adopting Release Appendix D: Applicable SEC Compliance and Disclosure......

Words: 158516 - Pages: 635

Business Shareholder

...Analysis of Shareholdings as at 31 March 2010 | | Authorised Share Capital | : RM100,000,000.00 | Issued and Paid-up Share Capital | : RM69,739,750.00 | Class of Shares | : Ordinary Shares of RM0.50 each | Voting Rights | : One vote per ordinary share | |   | Shareholdings Distribution Size of Holdings | No. of Shareholders/ Depositors | (%) of Shareholders/ Depositors | No. of Share | (%) of Issued Capital |   |   | | | | 1 - 99 | 100 | 4.54 | 3,560 | 0.00 | 100 - 1,000 | 459 | 21.33 | 390,508 | 0.28 | 1,001 - 10,000 | 1,277 | 59.34 | 5,469,680 | 3.92 | 10.001 - 100,000 | 278 | 12.92 | 8,143,060 | 5.84 | 100,001 - 6,973,974 | 37 | 1.72 | 24,582,100 | 17.63 | 6,973,975 and above | 1 | 0.04 | 100,890,592 | 72.33 | Total | 2,152 | 100.00 | 139,479,500 | 100.00 | | |   | | List of Top 30 Shareholders/Depositors   | Holdings | No | Name | Normal | % |   |   | | | 1. | CCM Marketing Sdn Bhd | 100,890,592 | 72.33 | 2. | Employees Provident Fund Board | 5,835,800 | 4.18 | 3. | Amanahraya Trustees Berhad - Skim Amanah Saham Bumiputera | 4,545,300 | 3.26 | 4. | TM Asia Life Malaysia Berhad - As Beneficial Owner (PF) | 1,995,300 | 1.43 | 5. | CCM Marketing Sdn Bhd | 1,442,300 | 1.03 | 6. | Mayban Nominees (Tempatan) Sdn Bhd  - Mayban Life Assurance Berhad (Par Fund) | 1,000,000 | 0.72 | 7. | Jerneh Insurance Bhd | 870,000 | 0.62 | 8. | Mayban Nominees (Tempatan) Sdn Bhd  - Mayban Life Assurance Berhad...

Words: 645 - Pages: 3

Company Reporting Shareholders

...2.1 Introduction Good company reporting is absolutely necessary and vital as it provides valuable information to its shareholders, creditors and other stakeholder groups who may have the interest in knowing the position of the companies and their activities. It is equally important to maintain an equilibrium or balance between the cost of collecting and publishing the information and the cost of finding the information by the respective readers. It does not necessarily mean that adding bulks of information make the report a good one. It is the quality of information that counts. Government is highly dedicated to affirm that reports maintain a certain degree of quality rather than large and unwieldy information. Trade and Industry Committee (2002) 2.2 Corporate Reporting and Disclosure Concept Clarity of purpose is the key to economic success. The companies are most likely to pretend their motto is to maximise shareholders value. “For the business community to become more effective, companies need to be clear about the purpose of their reports and provide what their end-users need to know”. Company reports serve the useful information to those interested in the activities of the company, mainly the stakeholder groups. Stakeholders act as nucleus, around which the future activities and strategies would be framed. Company law explicitly guards stakeholder’s value in different areas of disclosure. Zairi, M., and letza, S. (1994) Disclosure system is recognised......

Words: 2723 - Pages: 11

Shareholder Equity

...SHAREHOLDERS’ EQUITY QUIZ QUESTIONS 1. What is a share? (1 mark) 2. Identify two advantages of a private placement of shares as compared with a public issue. (1 mark) 3. The shareholders of Quinninup Ltd hold 25 000 A class ordinary shares, fully paid at $4.50 each. On 17 April 2013, the company directors voted to make a 1 for 5 rights offer to these shareholders. The additional shares were offered at $2.75 each, payable in full one month after acceptance. The offer closed on 31 May 2013 with 85% of the shareholders accepting. Shares were duly allotted on that date and all monies were received when due. Required Prepare journal entries to record these events, show all workings. (2 marks) 4. Forrest Ltd has issued 10 000 5% cumulative preference shares. Explain the meaning of the term “cumulative”. (1 mark) 5. The share capital of Murdoch Ltd consists of: 56 000 Ordinary A shares @ $2.50, fully paid $140 000 15 000 Ordinary B shares @ $1.50, paid to 80c 12 000 On 28 June 2013, the directors declared a 6c per share final dividend. Shareholder approval is not required to pay dividends. Required Prepare the journal entries to record the dividend, show all workings. (2 marks) 6. Eyre Ltd’s share capital consists of 75 000 ordinary shares of $2.30 each, fully paid. On 17 February 2013 the directors offered these shareholders the right to acquire one new share for each three held......

Words: 1422 - Pages: 6

Shareholder Activism

...We've seen a significant increase in shareholder activism in recent years, particularly from large institutional shareholders. One of these areas is that shareholders may now voice opinions on senior management compensation (though not a binding voice). However such activism extends much further to include proposed mergers, acquisitions or spinoffs. Provide some recent examples where shareholder activism has affected a company’s performance or actions, and discuss the consequences of this.  Ans: When we look at the history, we may observe many corporate scandals by the management of company’s inspite of shareholders approving handsome compensations for all these top management of the companies. But it may be observed that inspite doing a good work for the shareholders in terms offering better compensations; still many of the members of the top management team never think of doing justice and arrange to get better returns to each shareholder. As it is known that, shareholders approve the compensation of senior management, many in difficult times, there are proposal put off by the management for higher compensation which normally not accepted the shareholders. So they do not approve it. Even though there are difficulties in approving the compensation, the management tries kind of taking revenge and sending and ensures that, the company is stepping to a merger or acquisitions or spinoffs or share price goes down drastically by reducing the market value. It is observed in case...

Words: 463 - Pages: 2


...administration entity (state or municipal institution, agency, official, civil servant or other individual or legal entity obliged by law to perform public administration) to a higher public administration entity, and to present the Company while such appeals are in progress; * To represent the Company and all Company’s permanent establishments before the notary and notary state, social, public-service, economical and other authorities and organizations, civil and other courts, official and public institutions, bank institutions in any part of the World, and other credit organizations, their subordination, form of property for all operations and formalities in connection with all others related with participation of the Company as a member or shareholder or partner in the limited partnerships, limited liability partnerships, limited liability companies, public joint-stock companies, close public joint-stock companies, public limited companies, private limited companies, other companies with limited or unlimited liabilities and other types of existing companies, registered as a existing legal bodies under the law, including but not limited: grant, purchase, sale, exchange, increase of the authorized capital legal entities, to register (incorporate) all type legal entities, branches, representative offices of grant, purchase, sale, exchange, issue securities, stocks, bonds, warrants in any other countries of the World; * To transact, manage, carry on and do all and every......

Words: 1846 - Pages: 8


...Sample Solicited Application Letter July 23, 2013 Ms. Della Walker 89 Farmers Road Elk City, Idaho 58925 To: Mr. Mike Morrison Human Resource Manager Pierce Manufacturing 45 Melrose Road Elk City, Idaho 58925 Dear Mr. Morrison, I am writing to apply for the position of Content Manager on your web development team at Pierce Manufacturing. I learned of the opening through an online career job board. I found the opportunity as described very appealing. Based on the expertise and requirements listed, I believe I have the qualifications needed to make a positive contribution to the ongoing success of your organization. As a web communications manager, I worked as part of a team to develop the site structure and authored all of the content for the company’s website. I increased the company’s visibility with prospective customers by designing detailed product specification pages with built-in modules for size, color and quantity options. I increased page views and improved the company’s search engine ranking to first page status by employing a variety of techniques, including key word optimization, co-marketing strategies and strategic online advertisement placements. My experience in working on cross-departmental teams has allowed me to develop strong interpersonal skills. I possess the ability to work and communicate productively with creative coworkers and highly technical engineers. I am experienced in both the development and marketing...

Words: 344 - Pages: 2

Shareholder Equity

...SHAREHOLDERS’ EQUITY QUIZ QUESTIONS 1. What is a share? (1 mark) 2. Identify two advantages of a private placement of shares as compared with a public issue. (1 mark) 1. The investor can get positive allotment. 2. The investor can get high number of shares. 3. The share value can be lower many a times. 4. The company doesn't need to provide as much disclosure to investors 3. The shareholders of Quinninup Ltd hold 25 000 A class ordinary shares, fully paid at $4.50 each. On 17 April 2013, the company directors voted to make a 1 for 5 rights offer to these shareholders. The additional shares were offered at $2.75 each, payable in full one month after acceptance. The offer closed on 31 May 2013 with 85% of the shareholders accepting. Shares were duly allotted on that date and all monies were received when due. Required Prepare journal entries to record these events, show all workings. (2 marks) 4. Forrest Ltd has issued 10 000 5% cumulative preference shares. Explain the meaning of the term “cumulative”. (1 mark) 5. The share capital of Murdoch Ltd consists of: 56 000 Ordinary A shares @ $2.50, fully paid $140 000 15 000 Ordinary B shares @ $1.50, paid to 80c 12 000 On 28 June 2013, the directors declared a 6c per share final dividend. Shareholder approval is not required to pay dividends. Required Prepare the journal entries to record the dividend, show all workings.......

Words: 1460 - Pages: 6

Stakeholder vs Shareholder

...1.0 Introduction Managers often have to endure intense pressure from their employers with regard to the management of the business. Similarly, more pressure often comes from the surrounding people such as the employees, suppliers, competitors or even the surrounding community. Stakeholder and shareholder theories have been discussed intensely with each being viewed and exhibited as having both its merits and demerits. While some argue that the stakeholder theory is crucial in management, others fiercely content the notion. The supporters of shareholder theory argue that a business’ primary objective is to gain profits. Conversely, the proponents of the stakeholder approach contest that there are other things a business ought to be in consideration of besides profits. This never-ending debate often leaves business executives in a dilemma for the appropriate management style. Thus, this paper compares and contrasts the merits of the two theories in relation to the company executives’ responsibilities. 2.0 Theories at work 2.1 Decision-making in the stakeholders and shareholders theories. A stakeholder approach to management will help a business executive make the right decision quickly. One thing the stakeholder theory advocates is the inclusion of crucial stakeholders such as employees in a decision-making process. By utilizing this method, a business executive is likely to end up making the right decision because varied opinions are allowed. Employees and suppliers are......

Words: 3493 - Pages: 14

Shareholder Wealth

...main goals of financial mangers is shareholder wealth (Ross, Westerfield & Jaffe, 2010). Stakeholders are important but not the ultimate goal of a business. In order to maximize wealth potential for all invested the risk and reward should be carefully considered (Adams, 2008). One technique for doing this is capital budgeting because financial managers are able to make decisions with the proper information about risk and reward (Bloom & Van Reenee, 2010). This may also allow for stakeholder incentives and a share at the wealth. The question may come down to concern over cash flows or profits (Charron, 2007). Cash flows can be a goal of stakeholders where profits are a goal of stockholders. Both stakeholder goals and stockholder goals have benefits. An example, is when dealing with externalities such as pollution with cause maximizing the value of the firm to cause a misallocation of resources (Yoshimori, 1995). In today’s volatile markets and combined focus including stakeholders could be more conducive. The U.K. is similar to the U.S. with corporate governance goals of maximizing shareholder wealth (Yoshimori, 1995). But, Japan is an example of a country that has much broader goals. In Japan the concern is with the larger group of shareholders (Yoshimori, 1995). Japanese Ensures businesses are run in such a way that resources are used efficiently and customers suppliers and employees are taken care of as well as shareholders. Financial managers may have......

Words: 394 - Pages: 2