Pretend you’ve got a Gina Rinehart
Wednesday, February 1, 2012/
The worlds of business and media are abuzz with news that Australia’s richest person, mining magnate Gina Rinehart, is striving to build a 15% stake in publishing group Fairfax Media.
The big question is what she might do now she has her shares. Will she look to exert her influence over the company and get a bigger platform for her views? Will she try and get a board seat and change the way the company is run? Does she want to drive better performance at the company?
That all remains to be seen, but no doubt the board of Fairfax are grappling with how they are will deal with the arrival of a new, large shareholder.
Why not spend a few minutes and do the same. If you are the sole shareholder in your company or you have few shareholders, think about what would happen if a new shareholder joined your business.
- The reporting you would need to set up to communicate company performance to them.
- How they would fit into the company structure. Would you need a formal board?
- Would your strategy around dividends and returns change?
This exercise might reveal some areas where you need to lift your game. For example, would better reporting – the sort shareholders require – help your business today? If so, it’s time to act.
Get it done – today!