Mini case study

Chaudhry chemicals limited

a rainbow of shareholders
Presented To: Sir Shoaib Hassan

Presented By:
Aiman Amjad
Tehmeena Riaz
Sobia
Shareholders
R = Rasheed
A= Afzal
I= Iqbal
N= Naseem
B= Basit
O= Omar
W= Wahid
Introduction:
1. There were seven friends who were class fellows at b.com in
Hailey college (1984) Lahore.
2. There group was named as rainbow and such name actually
represents there cause of association.
3. All have there own personalities or colors.
4. After graduation they were in touch with each other for a shorter
period of time
Designations
Rasheed:
1. He was an executive vice president in an investment bank.
2. He was responsible for making investment in the equities.
Afzal:
1. After graduation he actually joined the spinning mil in
Faisalabad.
2. His family acquired a significant interest in the holdings of the
chemical company but these holdings were not as much significant
to be elected on the company board.
Iqbal:
1. He works in an brokage firm which is situated in Karachi.
2. He was highly specialized in two things:
Issuance of financial reports for various listed companies
To determine the position of the listed companies.
Naseem:
1. He was working in a news paper as the business editor.
2. He was very interested in the financial reports of the various
listed companies.
3. He was responsible for holding shares in the various companies.
Basit:
1. He was now a director with Chaudhry chemicals ltd, one of the
major chemical companies in the country specializing in
production of various industrial and household use chemicals.
2. His father was the chairman of the company
3. Basit served as the director of finance and chairman of its audit
committee.
4. His family owned 52% of the shares of CCL.
Omar:
1. He was working in insurance company.
2. The insurance company hold 7.2% of the issued shares off CCL.
3. He was the general manager of finance and looks after the
investments , particularly in the listed companies.
Wahid:
1. He was the poet among the group and had no interest in shares and
investments.
2. He acted as the proxy for his cousin who had 1.8% of the issued
shares.
Annual general meeting:
the meeting of shareholders was held in Lahore on 22 march 2010.
The basic purpose was to discuss the annual report of the year ended
31 December 2009.
Problems with ccl:
1. ccl was being runed in an autocratic and an old fashion way, this
opinion shows that it actually hampers the growth of the company.
2. Basit father was sacrificing the long term benefits for the sake of
pretty immediate benefits.
contribution of each shareholder
Rasheed and Omar:
As they both belong to an investment and an insurance company so the both
promised that they will get their respective employers to exert pressure on the
CCL board to improve its governance.
Afzal:
He actually offered to gradually increase its shareholdings in CCL and to try to
become a vocal shareholder and may be a regular director on its board.
Iqbal naseem and waheed:
They actually undertook to use their pens for bringing about a positive change in
the conduct of CCL board.
Questions zone
Q. What role is each of the rainbow friends playing?
Q. Can these friends bring a significant change in the governance
of CCL ? How ?
Q. Would u call rainbow a shareholders activist group? Why?
Q. Which of the friends will in your opinion, be more effective ?
why?
Thank you