Annual meetings are supposed to be an opportunity for shareholders to communicate to management.
It appears 3G Capital executives feel themselves above Ontario corporate law.
To wit… In the June 5th Globe and Mail article by Marina Strauss: Franchisees shunned at Tim Hortons parent company annual meeting
“Tim Hortons franchisees who traveled to Tim Hortons’ parent company Restaurant Brands International (RBI) annual shareholders meeting in Oakville, Ontario, Canada yesterday were in for a shock. CEO Daniel Schwartz, in an apparently highly unusual move at RBI or any other publicly held company, did an end run around them and ended the meeting without entertaining questions from anyone in the audience.
“I’m astounded,” John James (J.J.) Hoey, a franchisee in Mississauga and an organizer of the Great White North Franchisee Association, said later. The association was formed in March to speak for Tim Hortons restaurant owners and raise concerns about the effects of RBI’s cost-cutting.
…In an interview later, Mr. Schwartz said the company is in “constant dialogue with our restaurant owners. We’re always willing to speak with them.” — Marina Strauss, The Globe and Mail
But apparently not publicly at the shareholders meeting, for one.
RBI, controlled by Brazilian private equity firm 3G Capital, is quick to adopt its cost-cutting strategies at its acquired targets, a proven 3G strategy to rapidly boost profits.
…Peter Sklar, retail analyst at BMO Nesbitt Burns, said he was surprised RBI didn’t take questions from shareholders. “It’s unusual for investors not to have the opportunity to question management during the annual meeting,” he said. “I’ve never seen that before.” — Strauss, The Globe and Mail
RBI also owns Burger King and Popeyes.
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