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Small shareholder benefits from Companies Act

14/05/2007  14:24:23

 


 

A small shareholder has turned to using company legislation to force Tesco to heed his requests.

Ben Birnberg has urged the supermarket to adopt more ethical standards in its treatment of suppliers and farmers in low-wage countries.

Mr Birnberg wants Tesco to put a resolution to its directors at the companys annual general meeting.

The resolution, if passed, would mean independent auditors were appointed to ensure that workers in its supplier factories and farms are guaranteed "decent working conditions, a living wage, job security" and the right to join a trade union of their choice.

Jonathan Lloyd, company secretary of Tesco, originally turned down the request, claiming it was "not valid".

Mr Birnberg then turned to company legislation in the form of the Companies Act. Under Section 376 of the act he needed the support of at least 100 other shareholders who held an average of 2,000 shares each.

According to the Guardian, Mr Birnberg received the support of more than 100 shareholders who speak for an average of nearly 13,000 shares each.

Mr Birnberg intends to deliver his letters of support to Mr Lloyd at Tescos head office, in Cheshunt, this week.

He said: "This has been a bit of a struggle, but there has been enormous goodwill behind this from forward-thinking people."

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Information on offshore companies and offshore corporate structuring is available on several sections of this site. Incorporation and company law information is available in the offshore companies section. Specific information can be found on the relevant jurisdiction page. Further information is available on our excellent Tax Cafe publications. Related topical news stories can be found on this page.

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