Direct Stock Purchase Plan?
If there's someone reading this thread who will be at the annual shareholder's meeting, I would like to propose we work up a resolution to be introduced during the meeting, creating a direct stock purchase plan.
Something like this (off the top of my head):
Resolved, in the interest of furthering employee and individual investor equity participation in the company, the office of the Chief Financial Officer shall (1) specify a low cost investment, or direct stock purchase plan and (2) solicit proposals from stock transfer agencies or appropriate third parties for the administration of the plan and (3) present their recommended plan to the board of directors by the end of FY98, with the understanding that the costs of administering the plan shall be passed on to the stockholders participating in the plan.
Certainly this wouldn't work for final wording, but something along these lines might be passed by the board. If we can refine this into a good proposal, they may well adopt it. If the cost of administration is passed onto the shareholders we have a much better chance of getting passage (And I think these costs are usually rather minimal- $0.50 for extra statements, 2-3 cents a share, etc.) There's no point in diverting cashflow from the company for this stockholder benefit, and on the upside, its another avenue for the sale of the stock, helping their efforts to raise cash in the future, if they decide to issue more stock, and is a valued benefit to employees who cannot currently purchase stock directly (as I hear.)
What do you think?
Dragonfly |
