Smith & Nephew / SN (14 April 2016)

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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.

This year’s Finance II students discuss their analysis of Smith & Nephew’s AGM 2016 in an interview with me:

http://media.rawvoice.com/lse_fmg/richmedia.lse.ac.uk

 

Proposal Excerpt of Student Recommendations
For Against
(1) Reports and accounts
  • “…meets guidelines… sufficient policies in place”
(2) Director’s remuneration report
  • “no significant improvement from year 2015 despite shareholders’ feedback”
  • “no disclosure of future targets”
(3) Dividend
  • “increase from last year by 4%”
  • “can be covered by earnings”
(4-14) Election of directors
  • performing well under the current directors”
(15-16) Auditor ratification
  • “KPMG is a reliable auditor”
(17) Authority to allot shares
  • “Same method done for AGM 2015 and the amount of the money is the same”
  • “Considered within guidelines”
(18) Disapplication of pre-emption rights
  • “for the flexibility of the company, especially for acquisitions”
(19) Purchase of own shares
  • “In line with normal market practice”
(20) Notice period for General Meetings
  • “Follows the UK Company Law and Corporate Governance Code”