Shareholders play a crucial financial part in Coca-Cola Amatil’s revenue performance. It is a critical factor for any company to have practical and long-term shareholder interest. Sometimes, elements like lack of trust, constant change of higher management, and the market situation, play a vital role due to which the company tends to lose their shareholders. This case study aims to analyse the board of directors’ situation in Coca-Cola Amatil and the effects on their shareholders.
Coca-Cola in the Australian region has nominee directors and related party committee members. Coca-Cola’s board of directors play nominee directors and related party committee roles at the same time. Most of the directors in CCA are independent and also the part of nominee committee. These committees serve shareholders, stakeholders, and investors interested in the Coca-Cola Australian region. Shareholders take a massive interest in the company’s revenue because they are the ones who are investing the money and want to get a return from it, in a long-term or short-term perspective.
In Coca-Cola Amatil, several directors are from different backgrounds and are serving in various fields. This can be a risk from a shareholder’s perspective because they need to get results and to get results, a company has to find the best resources. Although all the directors are skilled from a shareholder’s perspective, it can be crucial for the company. Krishnakumar Thirumalai is a member of the risk & sustainability committee, nominations committee, and people’s committee of Coca-Cola Amatil. He has studied engineering, business and management. Regarding him, shareholders might have an issue of risk in the management policies and the investment they are doing to the company. John Borgetti, who is also a member of the risk & sustainability committee, nominations committee, peoples committee, and related party committee, has vast experience in the airline industry of Australia. This can also be a factor in their shareholder conflict because they would think he is not an appropriate member of the company. Shareholder’s lack of interest can directly affect the financial situation of Coca-Cola. It can either make a company grow stronger or decrease the wealth of an organisation (Bebchuk and Hamdani, 2016).
However, Coca-Cola Amatil has an experienced list of directors from different regions of the world. They have served different cultures and various organisations. In Coca-Cola Amatil, directors like Paul O’Sullivan and Mark Johnson are also helping at the board of directors position and playing their part efficiently. In the long run, the skills of these directors can play a huge role in developing links with the company’s stakeholders. Different regions of Australia have a different variety of shareholders who are willing to invest in the retailing of CCA. The functioning and skills of the shareholders can play a successful part in the success of Coca-Cola Amatil. Such as Ilana Atlas, who is the chairman of Coca-Cola Amatil and has experience of over 22 years. Same as Ilana, Alison Watkins, who is the group managing director. Many other directors are also a part of the company. While shareholders are a different species than directors, they both run the organisation as a whole. Both are effective in the profit and loss of the company. Having the skills of Ilana and Alison in the development of shareholders can make CCA grow stronger.
However, linking with long-term shareholders can be beneficial to Coca-Cola Amatil. Coca-Cola needs to aim at a long-term shareholder perspective (Bebchuk and Hamdani, 2016). Some companies try to have shareholders who have a shorter investment perspective. It makes the company aim for only a limited time. But, as Coca-Cola is a multinational firm, looking for a long-term perspective will help them gain tremendous results. Having the skills of the above-told directors like Ilana, Alison, Mark, Julie and others will make CCA develop in the shareholder’s market and produce positive results.
Bebchuk, L.A. and Hamdani, A., 2016. Independent Directors and Controlling Shareholders. U. Pa. L. Rev., 165, p.1271.