||Last Updated: Jan 3rd, 2022 - 07:04:22
The Caribbean Cement Company’s (CCC) royalty fee catastrophe brings to the fore the matter of corporate governance in publicly traded companies. For where there are the potential for conflict of
interest by majority shareholders the system of approving resolutions ought to be one person/entity one vote (a kind of suffrage).
Same knife tik stick, tik goat
It is ironic that Mayberry Investments Limited (MIL), that holds the largest block of shares in CCC (13.5 million) outside of Cemex and affiliates, is howling like a wolf at the moon. It is they that brokered
the 2017 take-over-offer of Caribbean Flavours and Fragrances Limited (CFF) based on a secret agreement in 2014 between the Jameses and Derrimon Trading Limited (DTL).
MIL is “woke” and now contending that Cemex gave no indication to investors over the years of the pending royalty.
Undisclosed agreements by majority shareholders in entities under their control need to be examined by the regulatory bodies, it is antithetic to market transparency.
I wonder if CCC board is aware of what transpired with the government after the company’s 2002 expansion and modernization program and that it’s the imposition of the 40% tariff that saved them.
Source: Jamaica Stock Exchange, Jamaica Gleaner
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