Shareholders play a crucial financial part in Coca Cola Amatil revenue performance. It is a critical factor for any company to have practical and long term shareholder’s interest. Sometimes, elements like lack of trust, constant change of higher management, and the markets 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 one who is investing the money and wants 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 best resources. Although all the directors are skilled from a shareholder’s perspective, it can be crucial for the company. Krishnakumar Thirumalai who is the member of risk & sustainability committee, nominations committee, and peoples 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 the member of risk & sustainability committee, nominations committee, peoples committee, and related party committee, has a vast experience in the airline industry of Australia. This can also be a factor in their shareholder’s 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 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 more extended 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 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 specie than a director, but they both run the organisation as a whole. Both are effective by the profit and loss of the company. Having the skills of Ilana and Alison into the development of shareholders, can make CCA grow more stronger.
However, linking with long term shareholders can be beneficial 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 above told directors like Ilana, Alison, Mark, Julie and others, will make CCA develop in shareholders market, and produce positive results.
Bebchuk, L.A. and Hamdani, A., 2016. Independent Directors and Controlling Shareholders. U. Pa. L. Rev., 165, p.1271.