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Disclaimer: These are excerpts from student assignments conducted as part of a Corporate Finance class. The opinions represented do not necessarily agree with mine. I do not vouch for the quality of the recommendations or the accuracy of the numbers. Follow the recommendations on your own risk.

Good performance in 2017, growth prospects good and excess cash available to buy back shares

Director elections: Professionalism, previous experience

Students call BCA out on high levels of proposed equity issuance authorization – 1/3 of current shares outstanding. Pre-emption rights especially important in such big issuance to avoid dilution

BCA wants blank check equity issuance authorization to be able to make acquisitions – but those should be authorized specifically, students think

Students also call BCA to caution in expansion strategy – needs to be flexible to react to structural shifts such as Brexit and driverless cars

Proposal Excerpt of Student Recommendations
For Against
(2)Authorization of share issuances
  • Proposed figures far too high (1/3 of current shares outstanding)
    Firm claims issuances may be needed for acquisitions. But acquisitions should not be supported without further shareholder consent
(3)Authorization of share repurchases
  • Will allow better management by reduction of excess cash
  • Should grow profitable sectors such as automotive

Link to proxy statement:

http://www.bcamarketplaceplc.com/~/media/Files/B/BCA-V2/reports-and-presentations/notice-of-agm-2017.pdf

 

Video:

https://v.qq.com/x/page/w0537058wqv.html