Is it just me or have pirates become more endearing in recent years? Perhaps it’s the prevalence of children’s books in my literary life, but it seems these one maligned masters of skulduggery and cunning are more often revealed to be the good guys.
It’s not just make-believe pirates I’m talking about. No doubt those invested with hedge Fund Elliot Capital will be raising a cheer at their bold and cunning seizure of an Argentinean ship in an attempt to recoup some of its losses when the country defaulted in 2001. Elliot Capital should also be on the radar for other transport companies, not least National Express. Elliot owns nearly 20% of the company’s shares and has already shivered the timbers by failing to back the chairman, John Devaney, at this year’s AGM. Meanwhile, rebellious shareholders, including Invesco Perpetual, appear to have won a notable victory at BAE, as over 30% registered their objection to the proposed tie-up with EADS before the German and French governments ultimately scuppered the deal (for now at least).
Even if those scurvy politicians manage to actually agree on something, which appears to be more pipe-dream than realistic hope, BAE would need over 75% of shareholders to support the deal for it to succeed. Some may take offence at the suggestion activist shareholders (or even just those willing to raise an objection) should be considered pirates, but, in actual fact, the principles of good governance appear oddly in line with the rules of piracy. According to the Pirates Code, a victim can invoke the right of ‘parlay’, which allows them to seek an audience in order to avoid being forced to walk the plank. This engagement between parties is exactly what many investors and companies are now seeking ahead of next year’s AGM season in light of this year’s shareholder spring. And companies like National Express would be wise to invoke the right of parlay to ensure heads don’t role. Perhaps the Stewardship Code is more aptly named than many think. In the meantime, the Cusworth ship is preparing to set sail for new adventures into parenthood. I will, no doubt, be all at sea for the next few months before returning to these shores next year to once again plague you with strange and unusual tales of the investment world.
Till then, me hearties!
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